Legal & General, acting in a partnership with PGGM, has acquired its largest build-to-rent (BtR) site in Woolwich. The property, known as Macbean, is Legal & General’s third BTR scheme in London, with existing developments progressing in Walthamstow and Croydon.
Located near Woolwich Arsenal Overground Station, this brownfield site has been identified as one of the last development opportunities of scale opposite a Crossrail station, within one of the highest growth areas along the new rail line. Subject to planning approval, the scheme is projected to deliver over 650 new homes, together with 21,000ft² of commercial space and a new public square. The development will comprise both private and affordable rental homes, split between London Living Rent and Discount Market rent.
Legal & General was advised by Colliers International on this acquisition. The purchase price has not been disclosed.
Dan Batterton, BTR Fund Manager at LGIM Real Assets, said: “Macbean is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large-scale sustainable rental schemes which will have a positive long-term socioeconomic impact. The location is highly desirable for renters and, with over 650 units planned for the site, is of a size which will offer significantly reduced living costs thanks to economies of scale. Given the notable infrastructure developments in the area, such as Crossrail, it has been a target location for us to expand our BTR offering and we remain firmly on track with our growth plans.”
Mathieu Elshout, Senior Director Private Real Estate at PGGM, commented: “As a responsible investor of Dutch pension capital, it is our ambition to build long-term partnerships with prominent UK real estate players, investing in sustainable developments with a positive impact on the environment. Our growing BTR venture with Legal & General is delivering on this goal, adding quality stock within areas, such as Woolwich, which are suffering from a severe lack of housing stock, whilst supporting wider urban regeneration.”
James Lidgate, Director of Housing at Legal & General Capital, said: “As the UK’s population continues to grow and renting becomes a tenure of choice, delivery of high density, high-quality developments with vibrant communities is becoming more and more important. This latest development, our largest BTR acquisition to date, is another step forward for Legal & General in its ambitions to tackle the severe housing shortage that the UK is facing, helping to address the significant supply and demand imbalance – both in the Borough of Greenwich and across London as a whole.”