Legal & General has made its first investment in the private rented sector, after acquiring a £25m regeneration site in north London.
The group’s principal investment division group Legal & General Capital has bought a site Walthamstow, with plans to build 300 PRS flats.
The investor confirmed its ambitions to invest up to a £1bn in the sector, as reported by Construction News late last year.
LGC director of investments Laura Mason said this “will be the first of many” PRS deals for the company.
“PRS fits our investment objectives extremely well,” she added.
“We are creating new assets for Legal & General that generate a long term inflation linked income which is natural fit for our balance sheet.”
The development will be built and managed by Legal & General Property, on behalf of LGC.
Legal & General Property managing director Bill Hughes said with a housing supply crisis, it was important to focus on purpose-built build to rent investments of scale.
LGC is responsible for investing the capital of L&G’s balance sheet.
It is focused on committing capital to housing more broadly and its investments include Cala Homes, which recently acquired Banner Homes.