Legal & General has acquired a city centre development in Bath for €55.1m, and plans to develop 171 build-to-rent (BTR) homes.
The Roseberry Place development is Legal & General’s fourth BTR scheme, following developments in Bristol, Salford and Walthamstow. The firm now has 70,000 houses in its pipeline, 1,200 of which are BTR.
According to Legal & General, the company has €1.2bn available to invest in large-scale rental developments, which will deliver income for their pension funds. The developments are intended to create economic stimulus in the UK, while establishing BTR as an institutional asset class.
The Roseberry Place scheme in Bath will also feature 126 parking spaces and 1,579 ft² of retail space.
It was acquired by a joint venture including Legal & General Investment Management (LGIM) Real Assets, Legal & General Capital and PGGM, a Dutch pension fund manager.
James Lidgate, director of housing at Legal & General Capital, said: “This scheme is an excellent example of the partnership’s asset acquisition strategy—investing in long term sustainable urban schemes that support wider urban regeneration by better utilising the local existing infrastructure, and maximising land density in areas where there is a shortage of housing supply.”
Dan Batterton, BTR fund manager at LGIM Real Assets, said: “This acquisition is a prime example of the type of compelling opportunities there are in the market at the moment, as we continue to build our pipeline.”
He added: “We are targeting well-located sites where there is the opportunity to influence all aspects of design and construction from the start to create a best-in-class product that will provide a positive lifestyle choice for elective renters. We remain on track to deliver on the growth plans for our major BTR platform focused on holding assets for the long term on behalf of investors.”
Cushman and Wakefield acted on behalf of Legal & General on this transaction.