Legal & General announced Thursday that it has agreed to the funding of a £57 million development site at Tower Works in Leeds City Centre, on behalf of its Build to Rent Fund (BTR Fund) and Access Development Partnership (a joint venture between Legal & General Capital and PGGM).
This investment follows the £100 million investment to develop Hockley Mills, a 400 apartment scheme in Birmingham.
Current housing stock is unable to meet the growing demand for rental accommodation in Leeds, according to the company.
”Recognising the prospect for rental growth in Leeds, Legal & General has acquired two Build to Rent (BTR) sites in the city centre; Mustard Wharf in 2017, and now Tower Works,” said Legal & General in a statement.
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Both sites are central to the landmark South Bank regeneration area, and together will deliver 500 homes, offering one, two and three bedroom apartments, alongside over 16,000 sq. ft. of commercial space.
”As Covid-19 drives secular changes and a fundamental rethink of many areas of the real estate sector, BTR has remained largely unaffected. It has delivered stable income returns throughout the crisis, with occupancy, rent collection and demand remaining high. In the last four weeks, we have committed £57 million to Tower Works, £100m to Hockley Mills in Birmingham, and welcomed the first residents to our Mustard Wharf scheme in Leeds, Box Makers Yard in Bristol and the final phase of The Slate Yard in Salford. We continue to invest throughout the UK and demonstrate the need for homes with functional space to work, alongside convenient access to local cultural and leisure amenities,” said Dan Batterton, Senior Fund Manager, BTR, LGIM Real Assets.
Richardson and Ask Real Estate Ltd will act as developers at the Tower Works site in Leeds – delivering the 245 apartment scheme. Works will start on site in the coming months.