L&G enters the growing private rental sector.
Legal & General has announced its first investment in the UK Private Rental Sector (PRS) market and plans to become a major owner of rented accommodation; seeing it as an ideal new institutional asset class for long term investors, and with an appetite to invest up to ,~1bn in the sector.
Legal & General Capital (LGC), the principal investment division of the Group, has acquired an initial ,~25m regeneration site at Walthamstow in London to build and rent over 300 flats. The accommodation will be a range of 1, 2, and 3 bedroom flats.
On completion the rent from the flats will provide an attractive long-term institutional investment return. By investing in projects such as Walthamstow, Legal & General can access a supply of PRS assets and achieve a better match to long-term annuity liabilities than existing fixed income assets, enhance returns across the Group, and provide real economic growth for the UK by creating much needed new housing.