News25.03.252.30 PM by Jenny Messenger
Legal & General has struck a deal with one of Japan’s largest property developers to create around 1,000 “high-quality” build-to-rent (BTR) homes over the next five years.
Legal & General has linked up with Nomura to build 1,000 homes (picture: Alamy)
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Legal & General has struck a deal with one of Japan’s largest property developers to create around 1,000 “high-quality” build-to-rent homes over the next five years #UKhousing
The insurance giant said the tie-up with Nomura Real Estate Development combines its “extensive knowledge” of the UK real estate market and Nomura’s “design and build-quality expertise”.
The partnership will initially target sites in central London, focusing on brownfield and underutilised land.
However, L&G said it will focus on a “range of sites” over the next five years.
The first scheme will be in Herne Hill, Lambeth, and deliver over 200 homes, with 35% of these being affordable. The development will include a gym and co-working spaces. All homes will be developed and operated by L&G.
Dan Batterton, head of the residential investment strategy at L&G, said the partnership with Nomura showed “the attractiveness of the UK residential market for international investors”.
He added: “This partnership is a great example of how we can bring international capital into the UK to drive up delivery of much-needed homes, across all tenures.”
L&G did not disclose how much Nomura has invested into the partnership.
The deal is part of L&G’s BTR strategy, which has seen the firm deploy around £3bn into the sector since 2016. So far, it has delivered around 10,000 homes.
The growing BTR sector is currently estimated to be around 2%-3% of privately rented properties in the UK, but it is experiencing significant investment from investors.
Last month, Peabody and house builder Hill Group agreed a £116m deal with a BTR investor for part of a large development in east London.
Clive Betts, the veteran Labour MP, is also chairing a taskforce to support the sector’s growth, it was announced last month.
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Picture: Alamy
