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LEGAL & GENERAL ANNOUNCE £4BN INVESTMENT COMMITMENT, WORKING IN PARTNERSHIP WITH WEST MIDLANDS COMBINED AUTHORITY  

·         L&G makes seven-year multi-billion-pound landmark investment commitment to help the West Midlands Level Up  ·         Includes support for provision of housing of all tenures, including social and modular; commercial property and urban regeneration across multiple sites  ·         First project for the partnership will deliver new affordable homes in the

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Largest Built to Rent Scheme Announced

The largest ever Built To Rent (BTR) scheme has been announced by Legal & General, who is set to bring around 1,000 homes and 85,000 sq ft of commercial space to London. Two adjacent sites in Wandsworth will combine for the scheme, providing purpose-built rental homes with long leases for

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Legal & General Acquires New Build to Rent Site

A new Build to Rent site has been acquired by Legal & General in Chelmsford City Centre. Contracts were exchanged for the site, which was purchased on behalf of the company’s UK Property Fund (‘The Fund’). The Built to Rent site is also known as Chelmer Waterside, forming part of

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L & G Gears up for First BTR Initiative

Legal & General are trying to cope with the issues surrounding the current housing crisis which is putting many renters under a huge amount of stress and worry due to the unacceptable standards and the lack of scruples by landlords, who are imposing exorbitant rents and causing misery to the

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Latest Issue

BDC 317 : Jun 2024

Legal & General

LEGAL & GENERAL ANNOUNCE £4BN INVESTMENT COMMITMENT, WORKING IN PARTNERSHIP WITH WEST MIDLANDS COMBINED AUTHORITY  

·         L&G makes seven-year multi-billion-pound landmark investment commitment to help the West Midlands Level Up  ·         Includes support for provision of housing of all tenures, including social and modular; commercial property and urban regeneration across multiple sites  ·         First project for the partnership will deliver new affordable homes in the Black Country  ·         Strong innovation focus to drive economic growth across the region  West Midlands Combined Authority (WMCA) Mayor, Andy Street, and Legal & General (L&G) CEO, Sir Nigel Wilson, have today signed a partnership agreement with L&G committing to invest £4bn in regeneration, housing and levelling up across the West Midlands.    The landmark agreement, L&G’s first with a combined authority, sets out a commitment to a seven-year programme of L&G investment, building on the region’s 2022 Investment Prospectus.   The programme is designed to create vibrant, dynamic communities in the region which, by providing attractive environments for people to work, live and play, will further enhance the West Midlands as a driver of UK economic growth. This builds on similar partnership agreements the WMCA has signed since 2018 with organisations such as Lovell and St Modwen.    The clear statement between both organisations combines the respective strengths of the WMCA and L&G. The Combined Authority has a clear and ambitious vision for the region with a strong commitment to Levelling Up, net zero, brownfield regeneration, affordable housing, inclusive growth and devolved powers to deliver on issues from land assembly to infrastructure, both physical and digital.     L&G, which manages £1.4 trillion as the UK’s largest investor, has financed over £30bn of regeneration in UK towns and cities outside London, and wants to repeat the scale of this investment.  It has already invested over £2bn in the WMCA’s region, including the £210m Birmingham Health Innovation Campus and multiple housing projects.     The 2022 West Midlands Investment Prospectus launched in March provides a range of possible development opportunities spread across the region which L&G and other investors can invest in. These prioritise creating thriving and more prosperous places and communities, including “corridors” and city and town centre development.      Alongside investment into new commercial developments, the agreement envisages a major contribution by L&G into climate-friendly projects, local communities and social and affordable housing, including build-to-sell and build-to-rent – providing high-quality homes across the range of tenures.   The agreement will also support the region’s target to deliver 215,000 new homes by 2031, as set out in its ground-breaking Housing Deal with Government in 2018, and the WMCA’s drive for wider inclusive growth.    Since the Housing Deal was signed, the West Midlands has secured upwards of £600m from Whitehall to drive regeneration with new housing and commercial schemes focussed predominantly on derelict or vacant urban sites, often referred to as brownfield land.   Using a nationally leading ‘brownfield first’ approach, WMCA investments have unlocked scores of disused industrial sites for new homes and jobs with developers required to make at least 20% of those new properties affordable under the WMCA’s own locally applied definition, linked to real world local wages rather than property prices.   The first scheme for the partnership will be The Junction, a brownfield site in Oldbury which has lain empty for over 20 years. The site will be brought back into economic use through the investment of L&G. The development will deliver 234 energy efficient new homes of which nearly 50% will be for affordable housing under the WMCA’s local definition.   Andy Street, Mayor of the West Midlands and chair of the WMCA, said: “The unveiling of this £4 billion partnership agreement with L&G is a prime example of how the West Midlands is getting on and delivering Levelling Up. This major investment will help regenerate long neglected areas across the West Midlands, provide affordable homes in the communities where the need is most felt, and supercharge economic growth in the years ahead.      “The scale of the ambition L&G is showing is evident in both the huge sums involved and the breadth of projects envisioned. It is a tremendous vote of confidence in the future of our region from one of the world’s biggest investors, and I am delighted L&G came to the table and agreed such a monumental commitment with us.   “I cannot wait to see this investment rolled out, projects underway, and the lives of our residents changed for the better.”     Sir Nigel Wilson, CEO of L&G, added: “We have been investing across the UK in partnership with cities and universities for a decade.  It’s part of our ‘Inclusive Capitalism’ approach and has delivered terrific economic and social results. With Andy and his colleagues as ambitious partners at WMCA, we can take this to a new level.    “The West Midlands’ economic plan, resources and skills make it an attractive destination for trade and investment from across the world; our role in this is to put UK funds including pension savings to work here so UK savers benefit from UK prosperity.”   Cllr Mike Bird, WMCA portfolio holder for Housing and Land and leader of Walsall Council, said: “There’s no doubt that Covid has been hard on our regional economy but this partnership brings together public and private sector investment and skills on an unprecedented scale in the West Midlands.   “It also shows how our determination to press on and continue making key investments throughout the pandemic, bringing solid delivery on the ground, has been critical in driving private sector confidence and trust.    “The level of investment that L&G has set out will be an incredible shot in the arm for the West Midlands as we continue our recovery, helping to bring sustainable economic growth that benefits all our communities and supports our ambition to be a net zero region by 2041.”   L&G’s Director of Levelling Up, John Godfrey, adds: “Towns, cities and regions across the UK can do much, much better – this is the essence of the levelling up agenda. This framework agreement with the West Midlands enables political will to combine with financial resource so policy intentions become deliverable realities. We fully expect

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Legal & General and Wrenbridge secure planning consent for prime Cambridge industrial development

LGIM Real Assets (Legal & General), on behalf of its Managed Property Fund, and development partner Wrenbridge, announce that they have secured planning permission to transform a 107,000 sq ft industrial development at Gateway Cambridge in Bar Hill. This latest planning permission is in line with the fund’s strategy to evolve its asset holdings and deploy capital into key growth areas, such as the industrial sector, which have retained strong fundamentals. Despite the economic downturn, the fund has continued to drive forward this mandate and recently also announced the acquisition of a significant urban logistics scheme in Basildon for £23.2 million. Once complete, Gateway Cambridge will comprise eight Grade A units, ranging in size from 3,046 sq ft to 45,694 sq ft. Bar Hill is strategically located on the newly improved A14 with excellent connectivity to Cambridge and the M11. The area represents a popular location for industrial occupiers, with excellent amenity on the doorstep and a large workforce available. In line with Legal & General’s wider ESG commitments, Bar Hill has been designed from its inception to be a best in class, environmentally sustainable industrial development which focuses on staff wellbeing. As redevelopment gets underway, Legal & General will look to further bolster the ESG credentials of the new Gateway Cambridge scheme. Rob Codling, Senior Fund Manager, Managed Property Fund said:“Gateway Cambridge, Bar Hill was acquired by the Managed Property Fund in 2006 and is now well placed for modernisation. In line with its strategy, the fund is continuing to maximise holdings where we can be confident that location, occupier demand and sector fundamentals will sustain resilient income streams for the long term. At Bar Hill, we look forward to delivering a high-quality, sustainable development which can provide both economic value and employment opportunities to the local area.” James Feltham, Director at Wrenbridge, added:“The industrial sector continues to thrive, with demand for quality new space outstripping supply. Gateway Cambridge will deliver new units in a size range to cater for a range of occupiers and our focus is to provide a new sustainable development in an environment that will help companies attract and retain staff.” Bidwells and Savills are appointed as the leasing agents for the new development.

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Largest Built to Rent Scheme Announced

The largest ever Built To Rent (BTR) scheme has been announced by Legal & General, who is set to bring around 1,000 homes and 85,000 sq ft of commercial space to London. Two adjacent sites in Wandsworth will combine for the scheme, providing purpose-built rental homes with long leases for all ages, demographics and social groups. “As renting continues to become a tenure of choice in the UK, the delivery of high density, high quality developments with vibrant communities is becoming more and more important. To do this, we need to deliver schemes which offer well connected housing options, which are carefully integrated into the public realm, maximising our existing infrastructure and supporting economic growth. This latest development in Wandsworth, our largest BTR acquisition to date, is a perfect example, offering 1,000 new rental homes alongside improving the station infrastructure and offering commercial real estate space to support local businesses,” commented Paul Miller, MD Principal Investing at Legal & General Capital. Located within Zone 2 and adjacent to Wandsworth Town train station, the £500 million development will include a new entrance to the platforms and will form part of the major regeneration of the local area. It will also include 35% affordable housing. Through the creation of a BTR asset class, Legal & General is looking to use its sources of long term capital to help address the chronic lack of housing supply and meet the increasing demand for affordable, quality rental accommodation. “This latest acquisition is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive socioeconomic impact. The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK. Representing our largest scheme to date, this flagship BTR development is another step forward towards tackling the severe housing crisis facing both London and the UK, offering homes for all ages and social groups, as well as reduced living costs thanks to economies of scale,” said Dan Batterton, Head of Build To Rent at LGIM Real Assets.

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Legal & General Acquires New Build to Rent Site

A new Build to Rent site has been acquired by Legal & General in Chelmsford City Centre. Contracts were exchanged for the site, which was purchased on behalf of the company’s UK Property Fund (‘The Fund’). The Built to Rent site is also known as Chelmer Waterside, forming part of a major mixed-use development in Chelmsford. This development will provide a landmark urban regeneration scheme for the city, comprising 421 residential apartments, associated landscaping and local retail amenities. Taylor Wimpey will develop the Build to Rent homes, which will consist of 104 studio, one, two and three bedroom apartments in two adjoining Freehold blocks. This acquisition marks the first Build to Rent scheme for The Fund, and will sit alongside recent investments in hotels, healthcare and student accommodation. “This acquisition is in line with our strategy for the UK Property Fund to increase our exposure to alternative operational assets, whilst demonstrating the breadth of our wider fund management platform which has enabled us to collaborate with our well established Build to Rent team. As we continue to actively diversify our holdings into more alternative sectors, Build to Rent will remain a preferred subsector alongside operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with a robust rental growth story,” said Matthew Jarvis, Senior Fund Manager, UK Property Fund, at LGIM Real Assets. “Chelmsford in particular has strong location dynamics, benefitting from a 40% increase in average prices over the last 10 years, according to the UK HPI. With excellent commuter links to London, it is also set to experience notable population growth, placing further demand on housing,” Matthew Jarvis concluded.

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L & G Gears up for First BTR Initiative

Legal & General are trying to cope with the issues surrounding the current housing crisis which is putting many renters under a huge amount of stress and worry due to the unacceptable standards and the lack of scruples by landlords, who are imposing exorbitant rents and causing misery to the lives of millions of renters around the country. Part of an initiative that the government wants to implement supposedly to tackle this issue is the BTR (buy to rent) scheme that it announced in its white paper recently, and L & G will be implementing the building and construction of the first of these BTR schemes in Salford on the outskirts of Manchester. The new site itself will be known as The Slate and is set to be opened to potential new residents early this summer, and the company has deployed the services of an enterprise known as “urbanbubble” in order to ensure that the dreams of better and more affordable renting for all is achieved as soon as possible in order to salvage the ruined experiences of many people living in rented properties at the present moment. Indeed, with the construction and building of buy-to-rent properties, it is widely hoped that the scheme will be able to be successfully implemented through this partnership between LGIM and “urbanbubble.” Dan Batterton of LGIM Real Assets hopes that the project will allow renters greater flexibility on the different services that they use and will be able to benefit from more reasonable standards and housing conditions than under the current landlord-tenant guidelines and policies that are in place. In a similar vein, Michael Howard of “urbanbubble” has explained that he is very pleased that the company, of which he is the MD, is partnering up with LGIM Real Assets in order to deliver this new housing project on time and on budget to the best of their ability.

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