LGIM Real Assets (Legal and General Investment Management) has planned a four-year £ 270 million green fundraising campaign for a group of banks, including HSBC, NatWest, and Standard Chartered, on behalf of the Construction for Rent platform. HSBC and Standard Chartered acted as joint sustainability coordinators, while NatWest acted as coordinator and agent.
The green credit will be used to promote the £ 500 million Wandsworth Build to Rent (BTR) program. This investment is in line with the Green Loan Market Green Loan Principles and is still one of the largest financial institutions in the real estate sector. Qualification according to these principles stipulates that the loan money should be used to finance a recognized or certified green, regional, or international green infrastructure.
The former B&Q and Homebase site is one of Legal & General’s five BTR programs in London and represents GMIM’s largest residency to date. The project will bring more than a thousand homes, 35% of which are affordable, and more than 60,000 square feet of real estate. Construction is already underway, the first houses will be ready for use in 2023.
In 2021, LGIM Real Assets was the UK’s largest BTR investor, investing $ 700 million in this segment, with more than 2,000 new homes in more than six cases. Last year’s acquisitions included locations in Birmingham, Glasgow, Hove, Southampton, Lewisham, and Stratford. In total, LGIM Real Assets has so far donated £ 2.5 billion to the BTR segment, which has 20 sites in 12 cities. More than 2,500 homes have already been built and more than 6,000 are under construction.
LGIM Real Assets also received approval from the Legal & General Retirement Business (LGRI) for an additional £ 2.5 billion investment in BTR in February 2022, which will transfer another 7,000 homes over the next five years.
Dan Batterton, head of LGIM Real Assets, said: “Debt shows a strong investment rate in the BTR unit, where inequalities between supply and demand continue to support growth. Apartments are designed to meet the needs and livelihoods of citizens…, leading to production, services, and the highest standards of equipment management, efficiency, and long-term environmental sustainability to a CO2-free target by 2030. It also supports local authorities in procuring their own homes.