L&G to develop Brighton’s first build-to-rent scheme

News14 Feb 2018Natalie Taylor

Legal & General (L&G) is to deliver 200 homes and up to 3,000 sq m of commercial space under the first build-to-rent development in the city.

The financial services and investment group announced in January that it had exchanged contracts to acquire land in the centre of the city. The site, currently industrial space, is expected to provide a third of Brighton’s annual housing target.

L&G now has a build-to-rent offering in seven UK cities, with a pipeline of almost 2,000 homes and investment capability of about £1bn. It aims to have 6,000 units in planning, development or operation by the end of 2019.

It is funding the build-to-rent scheme through pension fund capital and a £600m joint venture between Legal & General Capital and Dutch pension fund PGGM.

Dan Batterton, fund manager for build-to-rent at Legal & General Investment Management, said: “Brighton is a vibrant city where people want to live and work. This acquisition represents a rare opportunity to acquire land in an unrivalled location and to deliver the first institutional-grade [build-to-rent] scheme. We look forward to working with the council to support Brighton’s talented workforce with the homes they deserve.”

James Lidgate, chief executive at Legal & General Homes, added: “Brighton is a thriving city with a hugely talented workforce. The UK needs urban centres that are fit for purpose and can support a creative, sustainable community like Brighton. Our [build-to-rent] pipeline is growing at pace, and it is exciting to see the impact that our developments are making to our UK cities.”