Legal & General, in partnership with Nest – the UK’s largest pension scheme by members – and Dutch investor PGGM, has acquired the first site as part of its build-to-rent partnership, which will transform 494 high-quality rental homes in central Manchester.
The development, known as F1, will deliver sought-after, sustainable rental accommodation in the New Jackson neighbourhood of Deansgate, Manchester.
L&G owns the adjacent north and west towers in Deansgate Square, which will create opportunities for wider placemaking and activation of the local area.
Through strategic developments to date, L&G along with property developer Renaker have played important roles in Manchester’s urban regeneration, addressing housing demand and contributing to the city’s economic growth.
In recent years, Greater Manchester has experienced rapid population growth and increased employment opportunities, requiring accelerated delivery of housing to keep pace with demand.
The Greater Manchester Combined Authority has highlighted the supply of quality housing is a critical factor in sustaining the high levels of economic growth and productivity in the city.
Dan Batterton, head of residential at L&G, said: “This partnership demonstrates how investment from domestic pension schemes as well as international private capital can support the UK government’s push to boost investment into productive assets, accelerate growth, and deliver pensions savings.”
Matthew Forward, Nest’s senior investment manager real estate, added: “We’re pleased to embark on this new partnership [with L&G and PGGM] with such an exciting project.
“It’s a fantastic opportunity right in the heart of Manchester, providing much needed, high-quality rental properties for a growing city. We look forward to expanding our portfolio with more UK sites, complementing the £3bn we’ve already directly invested in UK real estate.”
And Dirk Bootsma, private real estate senior investment manager at PGGM, added: “This is a great example of our ambition and commitment to deliver strong social and financial returns for the participants of Pension fund Zorg en Welzijn (PFZW). We see the social value of realising new, high-quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”
Comments