A joint venture between Legal & General Capital (LGC) and Dutch pension fund manager, PGGM, has completed the purchase of a Build to Rent development site in Bristol. The partnership is set to provide more than 3,000 homes in the UK, with an initial investment of £600m ploughed in to construct purpose-built private rental housing.
The cleared development site in Bristol has been acquired for £4.8m from Square Bay. Known as ND7, the site has planning permission to deliver 168 one, two and three bedroom homes. These homes will sit above 11,500 sq ft of flexible commercial space, enabling the creation of the first bespoke Build to Rent development in Bristol.
The site, which will be built and managed by LGIM Real Assets, is expected to be completed by the autumn of 2016.
Situated within spitting distance of Temple Meads Station, the site is also set to benefit from the Temple Quarter Enterprise Zone - one of the biggest urban regeneration initiatives in the country.
The Build to Rent development site will also aim for a sustainable, green approach, with waste efficiency, water optimisation, energy efficiency and steps to reduce pollution all included in the infrastructure.
"This latest acquisition supports our ambitions to increase our direct investment exposure to housing and create Build to Rent as an institutional asset class," said James Lidgate, Director of Housing at Legal & General Capital. "This scheme is an excellent example of the partnership’s asset acquisition strategy, by investing in long-term sustainable urban schemes centred around key transport hubs that support wider urban regeneration."
Michael Barrie, Director of Fund Management at LGIM Real Assets, said the development was another example of the company's "commitment to establishing a vibrant Build to Rent sector by creating bespoke, purpose-built, quality rental stock that will provide a positive lifestyle choice for elective renters".
He added: "This asset is situated in a strong micro location within Bristol very close to transport infrastructure. The demographics of the local population are also well suited to the Build to Rent product – being heavily weighted to young, multi-skilled professionals."