Legal & General has agreed a £76.5m forward funding deal for Watkin Jones’s Hove Gardens build-to-rent scheme.
LGIM made the acquisition on behalf of Legal & General Retirement.
Watkin Jones secured consent for 216 homes for the one-acre Ellen Street site, next to Hove station, last September.
Planning documents at the time said it would remain rented under the same ownership for 30 years and all flats would be let on three-year tenancies, with 22 units (10%) available at discount market rent.
Hove Gardens includes 5,000 sq ft of amenity space, with potential to include a gym and home-working. Buildings range from six to 18 storeys. There are two communal courtyards and two roof gardens on the seventh and twelfth floors, both with sea views.
The development is currently under construction, with RG Group appointed contractors, due to complete by July 2023.
Mike Powell, senior transactions manager for L&G Investment Management, said: “The completed development will be the first of its kind in Hove, transforming a warehouse brownfield site into a vibrant new place while helping to tackle the city’s shortage of housing.”
Alex Pease, chief investment officer at Watkin Jones, added: “Not only does [Brighton and Hove] offer excellent employment opportunities, with tech being the fastest-growing sector in the city, but it also offers a wide range of bars, shops and restaurants, combined with a thriving music and arts scene, making it a fantastic place to live and work.”
LGIM Real Assets has more than 5,000 homes across 15 BTR schemes in the UK. This year the investor has committed £150m to Birmingham and Leeds. It has a £2bn portfolio and a pipeline to deliver 7,500 homes by 2025.
Gerald Eve advised L&G and Cushman & Wakefield advised Watkin Jones.
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