Investment in Legal & General’s build to rent fund hits £1bn
Legal & General's build to rent (BTR) fund has attracted £170m in investment, bringing its total value to £1bn.
Major institutions have now invested in the open-ended fund, according to Legal & General Investment Management Real Assets (LGIM Real Assets). The investors were not disclosed.
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The fund has put 1,000 homes under construction or planning since it launched, with schemes in Bristol, Salford and Walthamstow. Future projects are planned in Birmingham, Leeds and London.
The aim of the fund is to supply much-needed rental accommodation and to provide rental income for pension funds. Earlier this year, Legal & General Capital and PGGM contributed £600m to the fund.
James Lidgate, director of housing at Legal & General capital, said: "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.
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"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 LGIM, to deliver modern, energy efficient homes."
Mike Barrie, director of fund management at LGIM Real Assets, said: “It is very pleasing to attract such significant institutional investment into our build to rent platform. We have a housing crisis in the UK, and only with institutional funding can we deliver the new homes the country needs.
"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.”