L&G has formed a new partnership with Nomura Real Estate Development to deliver more than 1,000 high-quality rental homes over the next five years.
The partnership will initially target sites in Central London, focusing on brownfield and underutilised land to help regenerate communities and maximise the delivery of sustainable, high-quality homes. All of the properties will be developed and operated by L&G.
The partnership has already acquired its first site in Herne Hill, in the London Borough of Lambeth, which will feature more than 200 homes, 35% of which have been designated as affordable housing. The development will also feature a wide range of amenities, including landscaped communal gardens, co-working spaces and a gym.
Bill Hughes, global head of private markets at L&G, said: “This announcement further exemplifies our growth ambitions coming to fruition. Our residential platform is one of the longest standing foundations of our private markets capabilities and will continue to be a strategic driver of growth.
“Through long-term global partnerships, such as this, we continue to deepen our international presence, and deliver on our strategy to attract third-party capital to co-invest in our private assets. This partnership demonstrates how L&G’s expertise and track-record in UK real estate attracts international investment into the UK’s residential market, supporting the government’s initiative to boost housing delivery and accelerate growth.”
Dan Batterton, head of residential at L&G, added: “We know there’s a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes in the UK. This partnership demonstrates the attractiveness of the UK residential market for international investors, such as Nomura.
“We are thrilled to be joining forces with one of the biggest and best apartment developers in Japan, pooling our expertise as leaders in our respective markets. Having launched our BTR strategy in 2016, we’ve accumulated almost a decade of experience in the UK rental market. This extensive knowledge allows us to offer partners unparalleled insights and the advantages of our economies of scale to deliver high-quality rental accommodation at pace. Our combined knowledge and best practices will no doubt deliver exceptional new homes.
“This partnership is a great example of how we can bring international capital into the UK to drive up delivery of much-needed homes, across all tenures. Institutional investment has an important role to play, and we expect investor demand in UK housing to continue to grow as the government continues to look to meet its housing targets.”
