British insurer investment will enable construction of 7,000 homes over next seven years
British insurer Legal & General has bought a portfolio of 4,000 low-cost homes for 拢252m, in a move it says will enable construction of 7,000 new homes.
L&G bought the homes from Places for People and will lease them back to the housing organisation on a 50-year basis.
The insurer said Places for People would build 7,000 new housing units in Britain over the next seven years with the sale proceeds.
L&G said the move represented the largest direct investment made to date by an institutional investor in the affordable housing sector.
David Cowans, group chief executive at Places for People, said: 鈥淭he scale of under supply in housing and the need to invest in infrastructure across the UK is central to our determination to develop partnerships with investors like Legal & General in order to create new consortia to tackle the shortfall in housing construction and free up resources to stimulate innovative investment in the infrastructure required to support it.鈥�
The news came as L&G鈥檚 property division announced it had won planning for an 拢85m extension to its Arndale Centre shopping centre in Eastbourne.
The scheme includes retail space, seven restaurants and a cinema and will start on site in early 2015.
The scheme is revised from an earlier 拢70m version that won planning from Eastbourne Borough Council in 2012.
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