Legal & General announces that is has exchanged contracts on two adjacent sites in Wandsworth which will combine to deliver its largest Built To Rent (BTR) scheme to date. The scheme has been acquired by the Legal & General BTR Fund, PGGM and Legal & General Capital.
With an anticipated Gross Development Cost of £500m, the site will be a flagship BTR development in the UK, providing around 1,000 homes and 85,000 sq ft of commercial space. The scheme has full planning consent which includes 35% affordable housing within one of Central London’s most established and popular residential areas.
Demand for rental property has continued to grow in the UK, having increased 34% over the last five years, according to Savills. Due to the supply/demand imbalance in the local area, the latest London Plan identifies that the unmet housing need in Wandsworth has now reached a shortfall of 2,310 new homes per year. Legal & General’s new scheme will be a significant contributor to tackling this shortage, providing purpose-built rental homes with long leases for all ages, demographics and social groups.
This latest scheme, covering six acres and currently comprising home improvement outlets, will represent the first BTR scheme in Wandsworth Town. Located within Zone 2 and adjacent to Wandsworth Town train station, the development will include a new entrance to the platforms and will form part of the major regeneration of the local area.
Legal & General’s first London BTR scheme, Blackhorse Mills in Walthamstow, will open in the Autumn.
Dan Batterton, Head of Build To Rent at LGIM Real Assets said: “This latest acquisition is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive socioeconomic impact. The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK. Representing our largest scheme to date, this flagship BTR development is another step forward towards tackling the severe housing crisis facing both London and the UK, offering homes for all ages and social groups, as well as reduced living costs thanks to economies of scale.”