Legal & General said it bought a Build To Rent (BTR) site at Mustard Wharf in the centre of Leeds from regeneration property developer U+I and expects to be able to begin construction on the £60 million scheme in early 2018.

The Leeds site has permission for 250 homes as well as 8,640 sq ft of commercial and amenity space.

L&G’s total investment capability for the BTR sector now stands at £1 billion, having raised capital from major pension funds for an open-ended Build to Rent (BTR) fund, as well as a £600 million joint venture investment by Legal & General Capital and Dutch pension fund PGGM.

Dan Batterton, BTR fund manager at LGIM Real Assets, said: “In our view Mustard Wharf is the ideal location for a BTR scheme in Leeds.

“It is close to major transport links and local amenities, and complements the wider regeneration of the local area, supporting job growth and the local economy over the long term.

“We are excited that we are going to create a new standard of rental accommodation and service in a thriving community.”

Mathieu Elshout, senior director, private real estate at PGGM, commented: “PGGM Private Real Estate builds strategic partnerships all over the world.

“This acquisition demonstrates the success of our partnership with L&G, having already secured five UK City regeneration schemes for our joint venture since its start last year.

“This enables us to make a positive difference to the built environment.

“Shaping the project from the outset, the L&G asset management team are able to create from scratch, good quality residential accommodation that suits renters’ needs and offers a new, professional level of customer service, while also addressing the UK’s housing shortage.

“As a responsible investor of Dutch pension capital we choose to back projects that contribute to a sustainable world.”