Legal & General beefs up Build to Rent fund

December 8, 2016 / Isla MacFarlane
Legal & General beefs up Build to Rent fund

Legal & General Investment Management Real Assets (LGIM Real Assets) has raised a further £170 million of equity investment from major institutions for an open-ended Build to Rent (BTR) fund.

The new fund will open up the rental market to long-term pension and institutional investors, and sits alongside £600 million of investment by Legal & General Capital and PGGM in 2016.

LGIM Real Assets’ total investment capability for BTR now stands at circa £1 billion. Since the launch of the LGIM Real Assets BTR platform, it has secured over a 1000 homes under construction or in planning within Bristol, Salford and Walthamstow (picture above), and has a pipeline of future projects, including Birmingham, Leeds and London.

“We have a housing crisis in the UK, and only with institutional funding can we deliver the new homes the country needs,” said Mike Barrie, Director of Fund Management at LGIM Real Assets. “We have already secured a £1 billion in funding, delivering 1000 new homes either in planning or under construction, from a standing start in 2016. We are creating new jobs in the UK, and stimulating economic growth, and in 2017 we’ll also have our first new tenants moving into much needed new homes.”

James Lidgate, Director of Housing at Legal & General Capital, added, “Legal & General is active in all parts of the housing market: build to rent, build to sell, student accommodation, modular construction, building new housing communities, and we’re also looking at purpose built retirement housing. There is a shortage in all types of housing tenure in the UK, and Legal & General Capital will deploy long-term investment capital with external partners, or with LGIM Real Assets to deliver modern, energy efficient, homes.”

LGIM Real Assets has said it is looking to provide a new institutional class of specifically designed rental accommodation.

Led by Dan Batterton, BTR Fund Manager, in the past year LGIM Real Assets has made several key appointments and created a dedicated six-strong BTR team.

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