Dutch PGGM scheme to partly fund 3,000 UK rented homes

Apartment buildingDutch pension scheme, PGGM, has bought a build-to-rent development site in Bristol, UK, as part of a newly formed partnership with Legal & General Capital (LGC). The partnership will initially invest £600 million (€779 million) into building purpose built private rental housing across the UK, providing over 3000 homes. LGC says the partnership signals an innovative approach in addressing the UK housing crisis. Completion of the first site, which was bought for £4.8 million and covers 168, one, two and three-bed homes is expected to be finished in autumn 2018. The site is within 300m of Temple Meads Station and benefits from wider investment into the Temple Quarter Enterprise Zone, one of the largest urban regeneration projects in the UK. Employment is strong in the area, with companies such as PWC, Osborne Clarke, Burges Salmon and Royal Bank of Scotland close by. Green infrastructure will also be incorporated into the development, including measures to reduce energy consumption. James Lidgate, director of housing at LGC, said: “This latest acquisition supports our ambitions to increase our direct investment exposure to housing and create build-to-rent as an institutional asset class – investing Legal & General’s balance sheet capital to achieve high-quality risk adjusted returns.” ©2016 funds europe

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