Press releases

L&G and PGGM announce Bristol build to rent acquisition for new partnership

Legal & General Capital (LGC) and Dutch pension fund manager, PGGM, have today announced that they have completed the acquisition of a Build to Rent development site in Bristol,  as part of their newly formed joint venture. The partnership will initially invest £600m into building purpose built private rental housing across the UK, providing over 3000 homes.

The partnership, which signals an innovative approach in addressing the UK housing crisis, has acquired a cleared development site in Bristol for £4.8m from Square Bay. The site, known as ND7, has planning consent to deliver 168, one, two and three bed homes above c.11, 500 sq ft of flexible commercial space, providing the opportunity to create the first bespoke Build to Rent development in Bristol. The site will be built and managed by LGIM Real Assets, on behalf of LGC, with completion anticipated in autumn 2018.

The asset is well located within 300m of Temple Meads Station and benefits from the wider investment into the Temple Quarter Enterprise Zone, one of the largest urban regeneration projects in the UK. Bristol has very positive rental growth prospects owing to relatively constrained local supply and a healthy demand dynamic and benefits from a growing and educated population, with a large proportion (25%) between the ages of 20 and 34, partly due to the fact there are two universities in the City. Moreover, employment is strong with a number of blue chip companies such as PWC, Osborne Clarke, Burges Salmon and RBS located close by. The scheme will be the largest City centre Build to Rent development of this type, providing a high-quality product for elective renters that will support them for the long term, offering a level of flexibility and choice that currently isn’t available in Bristol.

Sustainability will be at the heart of the development’s design with green infrastructure incorporated into the development.  Options to embed energy generation, reduce energy consumption, appropriately resource sensitive materials, optimise water and waste efficiency, and mitigate pollution during construction will all be incorporated.

James Lidgate, Director of Housing at Legal & General Capital, said: “This latest acquisition supports our ambitions to increase our direct investment exposure to housing and create Build to Rent as an institutional asset class – investing Legal & General’s balance sheet capital to achieve high-quality risk adjusted returns.

“This scheme is an excellent example of the partnership’s asset acquisition strategy, by investing in long term sustainable urban schemes centred around key transport hubs that support wider urban regeneration by maximising land density and better utilising the local existing infrastructure.”

Michael Barrie, Director of Fund Management, LGIM Real Assets, commented: “This is another example of our commitment to establishing a vibrant Build to Rent sector by creating bespoke, purpose-built, quality rental stock that will provide a positive lifestyle choice for elective renters.

“This asset is situated in a strong micro location within Bristol very close to transport infrastructure. The demographics of the local population are also well suited to the Build to Rent product – being heavily weighted to young, multi-skilled professionals.”


For further information, please contact:

Faye Walters
PR Manager, LGIM Real Assets
Tel: 020 3124 2823

Richard King
Head of Group Corporate Communications, Legal & General
Tel: 020 3124 2095


Notes to editors:

Legal & General Group Plc

Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £14bn (as at 26 January 2016) and is responsible for investing £728bn worldwide (as at 30th September 2015) on behalf of investors, policyholders and shareholders. Legal & General has over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2014, Legal & General's operating profit (on the IFRS basis) was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively.

For more information on Legal & General, please see


Legal & General Capital

Legal & General Capital (LGC) focuses on direct investments in four key sectors: UK Housing, UK Urban Regeneration, Alternative finance and Clean Energy.  These reflect our aim to invest for the long term in economically and socially useful assets, to secure competitive returns and to create new asset classes for Legal & General’s varied investment requirements, for our partners and for the wider marketplace. We work closely alongside other businesses within Legal & General to ensure the broadest range of skillsets are deployed on any project and to utilise principal investment and asset management synergies across the Group. Investments to date have included CALA Homes (housebuilding), Media City/Salford (urban regeneration) and Pemberton (Alternative finance).


About PGGM

PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 31, 2015 PGGM had EUR 183.3 billion in assets under management. The PGGM cooperative has approximately 700,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops future solutions by linking together pension, care, housing and work.


LGIM Real Assets:

LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £717bn in assets on behalf of over 3,100 clients (30 September 2015), providing products and solutions spanning all asset classes.  LGIM Real Assets, headed up by Bill Hughes, has an aggregate asset value of £19.9bn (30 September 2015) and is responsible for the division’s direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.

LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £17.5bn (30 September 2015).  These funds include:

Balanced Funds

  • Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund

Specialist Pooled Funds  

  • The Leisure Fund Limited Partnership; Industrial Property Investment Fund; Arlington Business Parks Partnership; and the English Ci