The Mustard Wharf site – acquired from U+I in partnership with CTP – has permission for 250 homes and 8,640 sq ft of commercial and amenity space.
L&G expects to be able to begin construction on the £60m scheme in early 2018, with practical completion scheduled for early 2020.
“In our view, Mustard Wharf is the ideal location for a BTR scheme in Leeds,” said Dan Batterton, BTR fund manager at LGIM Real Assets.
“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.
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“We are excited that we are going to create a new standard of rental accommodation and service in a thriving community.”
This latest investment brings L&G’s total BTR pipeline to over 1,400 units, with an expected gross development value of £420m across the portfolio.
L&G now has circa £1bn of total investment capability for its BTR project, having raised capital from major pension funds for an open-ended BTR fund, as well as a £600m joint venture investment by Legal & General Capital and PGGM.
Its first scheme in Salford is due to welcome its first residents at the start of June.
“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,” added James Lidgate, director of housing at L&G Capital.
“When complete, Mustard Wharf will provide well-connected, high-quality housing which is essential for supporting the UK’s economic position and driving future growth.”