Bath is to get its first major build-to-rent (BTR) scheme under plans announced this week for a 171-apartment development on a mainly derelict site on the edge of the city centre.
Insurance giant Legal & General is to create the scheme through its LGIM Real Assets division at Roseberry Place, off Lower Bristol Road. 
It acquired the site with Legal & General Capital (LGC), its principal investment arm, and Dutch Pension Fund Manager PGGM for £47.5m from Bristol property group Deeley Freed.
Deeley Freed, which had originally planned to develop the site itself as a 200-home scheme, has been appointed as developer by L&G.
It is the insurance group’s fourth BTR scheme following existing projects in Bristol, Salford and Walthamstow. BTR schemes are being encouraged by the government as an alternative to traditional housing schemes for sale.
They are becoming increasingly common in cities – particularly London – where a massive housing shortage is driving up prices to levels where they are out of the reach of most first-time buyers.
As a result, BTR schemes appeal especially to ‘generation rent’ – young professionals with a mobile lifestyle.
Bath has its own housing crisis, with a recent report showing house prices now more than 12 times the typical annual salary in the area.
As well as apartments, the Roseberry Place development will include 17,000 sq ft of retail space.
The brownfield land, which forms part of the Bath City Riverside Enterprise Area, already has outline planning permission. It includes a mix of general industrial and commercial, many of which are unused.
LGIM Real Assets BTR fund manager Dan Batterton said: “This acquisition is a prime example of the type of compelling opportunities there are in the market at the moment, as we continue to build our pipeline.
“We are targeting well-located sites where there is the opportunity to influence all aspects of design and construction from the start to create a best-in-class product that will provide a positive lifestyle choice for elective renters.
“We remain on track to deliver on the growth plans for our major BTR platform focused on holding assets for the long-term on behalf of investors.”
Legal & General Capital director of housing James Lidgate added: “This latest acquisition is in line with our strategy of increasing our direct investment exposure to housing and establishing BTR as an institutional asset class – investing Legal & General’s balance sheet capital, alongside other third party capital, to achieve high-quality risk adjusted returns.
“This scheme is an excellent example of the partnership’s asset acquisition strategy – investing in long-term sustainable urban schemes that support wider urban regeneration by better utilising the local existing infrastructure, and maximising land density in areas where there is a shortage of housing supply.”
Out of Legal & General’s total housing pipeline of more than 70,000 units, 1,200 are BTR homes.
Cushman & Wakefield acted for L&G on the transaction.
