LGIM Real Assets' UK property fund has made its maiden Build to Rent (BTR) investment, acquiring a development site in Chelmsford, Essex.
Financial details were not disclosed.
The asset, known as Chelmer Waterside, forms part of a major mixed-use development in Chelmsford which will eventually comprise 421 residential apartments, associated landscaping and local retail amenities.
The L&G acquisition is being developed in conjunction with Taylor Wimpey, and comprises 104 studio, one, two and three bedroom apartments in two adjoining freehold blocks.
'This acquisition is in line with our strategy for the UK property fund to increase our exposure to alternative operational assets, whilst demonstrating the breadth of our wider fund management platform which has enabled us to collaborate with our well established BTR team,' said Matthew Jarvis, senior fund manager, UK property fund, at LGIM Real Assets.
'As we continue to actively diversify our holdings into more alternative sectors, Build to Rent will remain a preferred subsector alongside operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with a robust rental growth story.'
Since launch in 2006, the fund has grown from £100 mln (€113 mln) to over £3 bn today.
The purchase represents the eleventh BTR asset across Legal & General’s wider platform.
Legal & General and Taylor Wimpey were advised by Savills and Colliers respectively on the deal.