Legal and General has purchased the Mustard Wharf site situated in the centre of Leeds, UK, for constructing its fifth build to rent (BTR) property in the country.
Bought from U+I in collaboration with CTP, the new £60m site has permission for 250 homes and 8,640ft² of commercial and amenity space.
The construction of the firm’s latest BTR scheme is expected to begin early next year, with plans to complete it by early 2020.
Legal and General’s total pipeline of BTR units, which includes the Mustard Wharf investment, is more than 1,400 with an estimated gross development value of £420m.
Legal and General Capital housing director James Lidgate said: “This latest acquisition supports our vision of investing in long-term sustainable schemes that support wider urban regeneration to transform and reshape Britain’s landscape. This brings jobs and housing back into the centre of cities and better utilises our existing infrastructure.
“When complete, Mustard Wharf will provide well-connected, high-quality housing, which is essential for supporting the UK’s economic position and driving future growth.”
With a total BTR investment capability of about £1bn, the company secured £600m joint venture (JV) funding from Legal and General Capital and PGGM.
PGGM private real estate senior director Mathieu Elshout said: “This acquisition demonstrates the success of our partnership with Legal and General, having already secured five UK City regeneration schemes for our JV since its start last year.
“Shaping the project from the outset, the Legal and General asset management team are able to create good quality residential accommodation that suits renters’ needs and offers a new, professional level of customer service, while also addressing the UK’s housing shortage.”
Image: Legal and General to begin its fifth BTR scheme at Leeds. Photo: courtesy of © Legal and General Group plc.