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UK: Legal & General is set to acquire the former Lambeth Hospital site in south London, where it will deliver a £350 million GDV build-to-rent (BTR) scheme.
The brownfield site, which is located between Clapham, Stockwell and Brixton, will be transformed in to a mixed-tenure neighbourhood with around 700 private and affordable homes, subject to planning. The scheme will be operated by L&G on completion, leveraging its national residential platform.
The acquisition is being made through the Access Development Partnership (ADP), L&G’s joint venture with PGGM and Nest.
Dan Batterton, head of housing, asset management, at L&G, said: “The redevelopment of the Lambeth Hospital site is a flagship example of the power of pension capital to address the chronic lack of housing supply by delivering large scale schemes in the areas that need them most, whilst also meeting the investment needs of our pension fund clients. Underpinned by long‑dated institutional capital, L&G is able to look beyond short‑term market cycles and commit to multi‑phase regeneration, giving partners and local authorities confidence in delivery at scale over the longer term. As a cornerstone of our asset management strategy, we have ambitious plans to accelerate the growth of our housing platform and support the delivery of new homes across the UK.”
Jane Bailey, chair, South London and Maudsley NHS Foundation Trust, added: “This is incredibly good news that will mean a host of benefits for not only the provision of mental health services locally but also the wider community. This is a wonderful opportunity to invest and transform for both the trust and the local community. I know from speaking with colleagues how important this decision is and what it means for us as a trust in allowing us to move forward.”
Dirk Bootsma, senior director, private real estate, at PGGM, said: “The acquisition of the Lambeth Hospital site is a great addition to our residential development partnership with L&G. This underlines our commitment to deliver strong financial returns for the participants of our client pension fund Zorg en Welzijn. We see the social value of realising new, high quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”
Matthew Forward, senior investment manager, real estate, at Nest, added: “ We’re really pleased to be embarking on this next investment, building on a partnership that aligns closely with Nest’s long-term approach to real estate. The scheme will support the provision of affordable homes for social rent, helping to encourage a broader mix of housing in Lambeth. At the same time, the all-electric design reflects our commitment to lower carbon living and to backing high-quality, future-ready homes. This is exactly the kind of investment we look for, one that can make a positive contribution locally while delivering the resilient, attractive returns our members rely on over the long term.”
CBRE advised the NHS on the transaction. Proceeds from the NHS land sale are intended to be reinvested into modern healthcare facilities, including the New Douglas Bennett House at Denmark Hill.
Highlights:
• UK: Legal & General is set to acquire the former Lambeth Hospital site in south London, where it will deliver a £350 million GDV build-to-rent (BTR) scheme
• The brownfield site, which is located between Clapham, Stockwell and Brixton, will be transformed in to a mixed-tenure neighbourhood with around 700 private and affordable homes, subject to planning
• The acquisition is being made through the Access Development Partnership (ADP), L&G’s joint venture with PGGM and Nest
