Legal & General plans to invest a further £2.5bn (€2.9bn) from pension funds in build-to-let (BTR) projects in the UK over the next five years.
Legal & General’s Retirement Institutional (LGRI) business, which invests with the backing of LGIM Real Assets, plans to invest pension funds from defined benefit schemes in residential projects to create more than 7,000 new homes.
Last year LGRI invested over £500m in the development of four BTR schemes in Stratford, Hove, Southampton and Lewisham.
Andrew Kail, CEO of Legal & General Retirement Institutional, said: “By investing pension funds in BTR schemes, we can invest in developments that help regenerate towns across the country and support the UK economy.
“Today’s announcement illustrates our commitment to creating thousands of high-quality, sustainable homes for the communities that need them most. This is inclusive capitalism at its best – investing in the real economy, generating returns to pay pensions and create a better society for all of us.
Dan Batterton, Head of BTR at Legal & General Investment Management Real Assets, said: “Following successful investments in 2021 and our long-term track record of developing and operating BTR programs, we are delighted that the LGR’s commitment to expanding its investment enables us to grow our mission and have a greater impact on the provision of high quality rental accommodation in the UK.
“Within five years, the Legal & General Group will have committed a total of at least £5 billion to the sector, providing 15,000 purpose-built BTR homes.”
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