L&G partners with Dutch pension firm PGGM and Nest in £1bn build-to-rent plan

Legal & General has announced it has signed a deal with UK pension scheme Nest and Dutch pension service provider PGGM which could see it invest up to £1bn to deliver thousands of build-to-rent homes.

Under the deal announced this week, the three investors have committed an initial £350m, and expect this to grow to £1bn “over the coming years.”

The announcement effectively marks the second phase of L&G and APPM’s Access Development Partnership launched in 2016 to speed up the delivery of rental homes, now joined by Nest which manages £43 billion of assets on behalf of a third of the UK workforce.

L&G said it has invested £3bn into the build to rent sector to date, delivering 10,000 homes.

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António Simões, group chief executive officer of Legal & General, said: “With an inherent supply and demand imbalance, there is a big gap to fill – and thus a need to drive up the delivery of all homes, across all tenures. Institutional investment has an important role to play, and we expect investor demand in the UK’s Build to Rent sector to continue to grow.

“The launch of ADP in 2016 was the catalyst that has enabled L&G to deliver 10,000 high-quality rental homes across the UK’s city centres. We’re therefore delighted to re-capitalise with PGGM and welcome a new co-investor in Nest.”