Legal & General has bought a 104-home build-to-rent development in Chelmsford city centre, Essex, CM2.
The scheme is located within Taylor Wimpey’s eight-acre Chelmer Waterside, a mixed-use development comprising 421 homes with landscaping and retail space. L&G will develop the BTR homes in conjunction with the housebuilder.
It is the first BTR acquisition on behalf of L&G’s £3bn UK Property Fund. It will be the 11th BTR asset across L&G’s wider platform.
Matthew Jarvis, senior fund manager at LGIM Real Assets, said: “This acquisition is in line with our strategy for the UK Property Fund to increase our exposure to alternative operational assets, whilst demonstrating the breadth of our wider fund management platform which has enabled us to collaborate with our well-established BTR team.”
Jarvis said that BTR will remain a preferred sub-sector as the fund diversifies to include alternative sectors. He said BTR offers “real-time access to occupational markets with a robust rental growth story”.
“Chelmsford in particular has strong location dynamics, benefitting from a 40% increase in average prices over the last 10 years, according to the UK House Price Index.
“With excellent commuter links to London, it is also set to experience notable population growth, placing further demand on housing.”
Legal & General were advised by Savills and Taylor Wimpey were advised by Colliers.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
