Legal & General has bought the Mustard Wharf site in Leeds from U+I for a 250-home rental development.
Mustard Wharf has been bought in partnership with CTP, and has permission for 8,640 sq ft of commercial and amenity space. L&G expects to begin construction on the £60m scheme in early 2018, with practical completion aimed for in early 2020.
James Lidgate, director of housing at Legal & General Capital, said: “This latest acquisition supports our vision of investing in long-term sustainable urban schemes that support wider urban regeneration to transform and reshape Britain’s landscape, bringing jobs and housing back into the centre of cities and better utilising our existing infrastructure.”
Leeds will be the fifth city the institution has invested in, and the company now has a pipeline of 1,400 units with a gross development value of £420m. It has sites in Bristol, Bath, Walthamstow, E17, and Salford.
Its total investment capability for the build to rent sector stands at around £1bn – having raised capital from major pension funds for an open-ended fund alongside a £600m jv investment by Legal & General Capital and PGGM.
Dan Batterton, BTR Fund Manager at LGIM Real Assets, said: “In our view Mustard Wharf is the ideal location for a BTR scheme in Leeds. It is close to major transport links and local amenities, and complements the wider regeneration of the local area, supporting job growth and the local economy over the long term.”
Knight Frank’s Residential Capital Markets team advised L&G.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
