LGIM secures £270m green debt facility for Wandsworth BTR scheme

LGIM secures £270m green debt facility for Wandsworth BTR scheme

LGIM Real Assets, on behalf of its build to rent platform, has secured a £270m green development financing from a banking group consisting of HSBC, NatWest and Standard Chartered.

The green debt facility will be used to fund the development of the £500m Wandsworth build to rent (BTR) scheme.

The former B&Q and Homebase sites are one of Legal & General’s five BTR schemes in London and mark LGIM’s largest residential development to date.

The scheme will deliver more than 1,000 homes, 35% of which will be affordable, and over 60,000 sq ft of commercial space. Construction work is already underway with the first homes ready for occupation in 2023.

Dan Batterton, Head of Residential for LGIM Real Assets: “The debt facility demonstrates the BTR sector’s solid investment proposition where the existing imbalance between demand and supply continues to support growth. We’re redoubling our commitment to BTR following an exceptional year as the largest BTR investor with the largest number of new leases across the market.

The apartments will be designed with a focus on lifestyle and resident satisfaction, delivering higher standards of design, service, and asset management, operational efficiency, and long-term environmental sustainability with operational net zero carbon targeted by 2030.

In keeping with our Inclusive Capitalism purpose, we want to help tackle the UK’s housing crisis, create new neighbourhoods and bring brownfield sites back into effective use. This will also support local authorities in meeting their housing targets.”

Phil Hooper, Head of Real Estate, NatWest speaking on behalf of the lending group: “We are delighted to support LGIM in the delivery of over 1,000 new build-to-rent homes. The sustainable nature of the assets is testament to LGIM’s transition to a zero carbon economy and we are therefore pleased to complete the financing as a green loan.”