The scheme will result in the redevelopment of the stand on the south side of Headingley cricket stadium and the adjacent north stand of the rugby stadium.
The property will be let to Leeds City Council on a 42-year lease, and under-let to Yorkshire County Cricket Club, Yorkshire Carnegie Rugby Union Football Club and Leeds Rhinos Rugby League Club.
The financing of the redevelopment is being made on behalf of Legal & General Retirement.
It has been estimated that once complete, the new stands will generate additional expenditure of over £107m by 2023.
Pete Gladwell, head of public sector partnerships at LGIM Real Assets, said: “When institutions such as Legal & General were created in the early 1800s, we were the original crowdfunding platforms; investing society’s capital for society’s benefit.
“This investment is the latest example of our rediscovering that ethos, investing at pace in the social fabric of Yorkshire, as part of a wider partnership with a proactive and collaborative local authority.
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“This investment is in line with our desire to transform and reshape Britain’s landscape by improving and better utilising our existing infrastructure.
“There is significant economic benefit that maintaining ‘Test’ status for Headingley will bring to the city and the wider region, which makes this redevelopment another important investment in the city, improving wellbeing and contributing to the growth of the local economy.”
The stadium has hosted international sport for over 110 years, including Tests, one-day internationals, international T20 matches and rugby league internationals.
This facility will bring Legal & General’s total investment in Leeds to over £600m.
Cllr Judith Blake, leader of Leeds City Council, added: “Through this agreement, Legal & General is playing a key role in ensuring that not only will Headingley be a modern and first-class venue, but also that the significant economic benefits that are brought to Leeds and the wider region through the hosting of top-class matches will continue.”