Cushman & Wakefield’s Investment team in Bristol has advised L&G and Dutch fund, PGGM on the development funding of a prime waterfront site in the centre of the World Heritage City of Bath for £47.5m.
The new development, called Roseberry Place, will consist of 171 new build-to-rent (BTR) apartments and 17,000 sq ft of retail space and is located on a high profile site within the Bath City Riverside Enterprise Area fronting the River Avon. The scheme secured detailed planning consent and it is anticipated that residents will be living on site by late 2018.
Nick Allan, Partner in Cushman & Wakefield’s Bristol Investment agency team commented: “We are delighted to have secured this off market development funding opportunity for the L&G and PGGM joint venture. This is will be first bespoken PRS scheme within Bath occupying a fantastic central location fronting the River Avon. The acute shortage of high quality and affordable residential accommodation together with city’s demographics all points to this being a very popular scheme.”
The scheme has been acquired by L&G Investment Management Real Assets on behalf of its BTR fund, together with its joint venture partnership between Legal & General Capital, the group's principal investment arm, and PGGM, the Dutch pension fund manager.
Dan Batterton, BTR fund manager at LGIM Real Assets, said: "This acquisition is a prime example of the type of compelling opportunities there are in the market at the moment, as we continue to build our pipeline. We are targeting well-located sites where there is the opportunity to influence all aspects of design and construction from the start to create a best-in-class product that will provide a positive lifestyle choice for elective renters."
James Lidgate, Director of Housing at Legal & General Capital, said: “This latest acquisition is in line with our strategy of increasing our direct investment exposure to housing and establishing Build to Rent as an institutional asset class – investing Legal & General’s balance sheet capital, alongside other third party capital, to achieve high-quality risk adjusted returns. This scheme is an excellent example of the partnership’s asset acquisition strategy - investing in long term sustainable urban schemes that support wider urban regeneration by better utilising the local existing infrastructure, and maximising land density in areas where there is a shortage of housing supply.”