Legal & General Retirement Institutional (LGRI), a division of the Legal & General Group, plans to fund the construction of around 7,000 build to rent (BTR) homes in the next five years.
It will be funded by £2.5bn of defined benefit (DB) schemes’ retirement pots.
LGRI invested more than £500m in 2021 on the development of four BTR schemes in Stratford (London), Hove, Southampton and Lewisham, which will have more than 1,300 homes. The first residents are expected to move into the Hove and Southampton developments in 2024.
LGRI invests with the support of Legal & General Investment Management Real Assets (LGIMRA), which has already invested £2.5bn into twenty BTR schemes around the UK, with 2,700 apartments already operational and a further 6,000 under construction.
“Within five years, the Legal & General Group will have committed a total of at least £5bn to the sector, providing 15,000 purpose built BTR homes,” said Dan Batterton, LGIMRA head of BTR.
All Legal & General BTR units are targeting Net Zero Carbon in operation by 2030.
Andrew Kail, chief executive of Legal & General Retirement Institutional, said: “Through investing pension funds into BTR schemes, we can invest into developments that contribute to the regeneration of cities all around the country and support the UK economy. Today’s announcement showcases our commitment to creating thousands of high-quality, sustainable homes for communities that need them most. This is inclusive capitalism at its best – by investing in the real economy, generating returns to pay pensions and create a better society for us all.”