L&G forms resi JV with Japanese developer Nomura

Legal & General has formed a partnership with Japanese developer Nomura Real Estate Development to deliver more than 1,000 build-to-rent homes. The joint venture has been launched with the acquisition of a site in Herne Hill, south London. The development will deliver more than 200 homes, 35% of which will be affordable. The development will also feature amenities, including gardens, co-working spaces and a gym. The JV will initially target sites in central London, focusing on brownfield and underutilised land. Over the next five years, it aims to deliver an initial 1,000 homes across a range of sites. All properties will be developed and operated by L&G. Bill Hughes, global head of private markets at L&G, said: “This announcement further exemplifies our growth ambitions coming to fruition. Our residential platform is one of the longest-standing foundations of our private markets capabilities and will continue to be a strategic driver of growth. “Through long-term global partnerships such as this we continue to deepen our international presence, and deliver on our strategy to attract third-party capital to co-invest in our private assets. “This partnership demonstrates how L&G’s expertise and track record in UK real estate attracts international investment into the UK’s residential market, supporting the government’s initiative to boost housing delivery and accelerate growth.” Dan Batterton, head of residential at L&G, said: “We know there is a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes in the UK. This partnership demonstrates the attractiveness of the UK residential market for international investors, such as Nomura. “We are thrilled to be joining forces with one of the biggest and best apartment developers in Japan, pooling our expertise as leaders in our respective markets. Having launched our BTR strategy in 2016, we have accumulated almost a decade of experience in the UK rental market. This extensive knowledge allows us to offer partners unparalleled insights and the advantages of our economies of scale to deliver high-quality rental accommodation at pace. Our combined knowledge and best practices will no doubt deliver exceptional new homes. “This partnership is a great example of how we can bring international capital into the UK to drive up delivery of much-needed homes across all tenures. Institutional investment has an important role to play, and we expect investor demand in UK housing to continue to grow as the Government continues to look to meet its housing targets.”