Legal & General is to develop two blocks of build-to-rent flats in Cardiff, after buying the site of the former Brains brewery from Rightacres.
L&G will spend £200m building 715 BTR flats on the site in Central Quay, which overlooks the River Taff, and has brought in Watkins Jones to develop the homes.
L&G said the £200m BTR development at Central Quay would consist of a mix of studio 1, 2 and 3 bed units and include facilities such as a concierge, lobby, gym, gardens and terraces, as well as around 19,500 sq ft of leisure and retail space.
The two towers will rise to 29 storeys and 20 storeys. Construction is scheduled to begin by the end of this year, with completion in 2025.
The deal takes L&G’s spending in the Welsh city to more than a £1bn in the past seven years.
Tom Roberts, head of strategic investment at LGIM Real Assets, said: “Investing long-term capital in what society needs has never been more important. For the past decade, Legal & General has brought partnership models, expertise and capital to stimulate mixed-use redevelopment – long before ‘levelling up’ was coined. Our £1bn investment in Cardiff reflects what patient investment can achieve”
Mike Powell, head of transactions, BTR, at LGIM Real Assets, added: “Residential rental demand has risen strongly in recent years due to increased activity in city centres across the UK, but supply is still constrained, leading to fast rental growth. Recognising the need to provide more high-quality rental homes, Legal & General now has 20 sites in 12 cities nationwide, with more than 2,500 apartments already occupied and over 6,000 more under construction.
“Since the start of 2021, Legal & General has committed £900m to seven new BTR projects across the UK, completing on two transactions in London, and committed to further developments in Southampton, Birmingham, Glasgow and Hove. This investment in Cardiff provides an opportunity to build on the role Legal & General has played in the urban regeneration of the city centre, developing much needed homes that will meet the employment growth that has been created. The development will deliver a new offering for young professionals to live, work and play in a river-fronting environment.”
Legal & General was advised by Knight Frank on the deal.
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