Legal & General Retirement Institutional (LGRI), a division of the Legal & General Group, today announces that it plans to invest £2.5bn of Defined Benefit (DB) schemes’ retirement funds into Build-to-Rent (BTR) schemes over the next five years, which will create more than 7,000 new homes.

LGRI  has already invested over £500m in 2021 on the development of four BTR schemes in Stratford, Hove, Southampton and Lewisham, which will create around 1,300 new homes.

LGRI invest with the support of Legal & General Investment Management Real Assets (LGIMRA), which is one of Europe’s largest institutional asset managers and a major global investor.

LGIMRA is one of the largest investors into BTR and has already invested about £2.5bn into 20 BTR schemes around the UK, with 2,700 apartments already operational and a further 6,000 under construction.

Legal & General’s well established BTR platform directly develops and works alongside third parties to create BTR schemes.

Andrew Kail, CEO, LGRI, said: “Through investing pension funds into BTR schemes, we can invest into developments that contribute to the regeneration of cities all around the country and support the UK economy.

“Today’s announcement showcases our commitment to creating thousands of high-quality, sustainable homes for communities that need them most. This is Inclusive Capitalism at its best – by investing in the real economy, generating returns to pay pensions and create a better society for us all.”

Dan Batterton, head of BTR at LGIMRA, commented: “Following successful investments in 2021 and our long-term track record in the development and operation of BTR schemes, we are delighted that LGR’s commitment to expand its investment allows us to grow our mission and have a greater impact on the supply of high quality rental housing in the UK.

“Within five years, the Legal & General Group will have committed a total of at least £5bn to the sector, providing 15,000 purpose built BTR homes.”