L&G £4 billion investment with West Midlands Combined Authority
West Midlands Combined Authority (WMCA) and Legal & General (L&G) have signed a partnership agreement. L&G has committed to invest £4 billion in regeneration, housing and levelling up across the West Midlands.
The landmark agreement, L&G’s first with a combined authority, sets out a commitment to a seven-year programme of L&G investment, building on the region’s 2022 Investment Prospectus.
The programme is designed to create vibrant, dynamic communities in the region which, by providing attractive environments for people to work, live and play, will further enhance the West Midlands. This builds on similar partnership agreements the WMCA has signed since 2018 with organisations such as Lovell and St Modwen.
The clear statement between both organisations combines the respective strengths of the WMCA and L&G. The Combined Authority has a clear and ambitious vision for the region with a strong commitment to Levelling Up, net zero, brownfield regeneration, affordable housing, inclusive growth and devolved powers to deliver on issues from land assembly to infrastructure, both physical and digital.
L&G has financed over £30bn of regeneration in UK towns and cities outside London and wants to repeat the scale of this investment. It has already invested over £2bn in the WMCA’s region, including the £210m Birmingham Health Innovation Campus and multiple housing projects.
Alongside investment into new commercial developments, the agreement envisages a major contribution by L&G into climate-friendly projects, local communities and social and affordable housing, including build-to-sell and build-to-rent – providing high-quality homes across the range of tenures.
The agreement will also support the region’s target to deliver 215,000 new homes by 2031, as set out in its ground-breaking Housing Deal with Government in 2018, and the WMCA’s drive for wider inclusive growth.
Since the Housing Deal was signed, the West Midlands has secured upwards of £600m from Whitehall to drive regeneration with new housing and commercial schemes focussed predominantly on derelict or vacant urban sites, often referred to as brownfield land.
Andy Street, Mayor of the West Midlands and chair of the WMCA, said: “The unveiling of this £4 billion partnership agreement with L&G is a prime example of how the West Midlands is getting on and delivering Levelling Up. This major investment will help regenerate long neglected areas across the West Midlands, provide affordable homes in the communities where the need is most felt, and supercharge economic growth in the years ahead.
“The scale of the ambition L&G is showing is evident in both the huge sums involved and the breadth of projects envisioned. It is a tremendous vote of confidence in the future of our region from one of the world’s biggest investors, and I am delighted L&G came to the table and agreed such a monumental commitment with us.
“I cannot wait to see this investment rolled out, projects underway, and the lives of our residents changed for the better.”
Sir Nigel Wilson, CEO of L&G, added: “We have been investing across the UK in partnership with cities and universities for a decade. It’s part of our ‘Inclusive Capitalism’ approach and has delivered terrific economic and social results. With Andy and his colleagues as ambitious partners at WMCA, we can take this to a new level.
“The West Midlands’ economic plan, resources and skills make it an attractive destination for trade and investment from across the world; our role in this is to put UK funds including pension savings to work here so UK savers benefit from UK prosperity.”