Border to Coast Pensions Partnership, the largest UK Local Government Pension Scheme (LGPS) pool, has exchanged on the forward funding of 139 single-family rental homes at Springstead Village, Cambridge.
Aberdeen Investments advised on the transaction which will see upwards of £70 million invested into 93 houses and 46 apartments. The investment derives from the pool’s UK real estate fund, into which ten of Border to Coast’s partner funds have committed £2 billion since October 2024.
Iain Leheny, deputy fund manager at Aberdeen Investments, said: “A lot of the UK’s housing stock is aging and hasn’t adapted to how people live today, with the country facing a shortage of good quality, modern housing, while home ownership is also increasingly out of reach for many.
“The private rental market is a vital part of the housing ecosystem and build to rent accounts for just 2% of stock – well behind our international peers. Springstead Village is the perfect example of the housing stock we want to invest in, combining high quality homes with growing local infrastructure.
“A lot of care has been taken in the design to make it feel like the kind of place tenants want to move to, with easy access to Cambridge’s tech and life sciences hub, bringing high convenience for busy families,” he said.
The development also marks Border to Coast’s first investment into single-family housing. The dwellings form part of a Springstead Village, a joint venture between Bellway and Latimer, part of Clarion Housing Group. Each home will have a minimum EPC B rating.
Joe McDonnell, chief investment officer at Border to Coast Pensions Partnership, said: “This is a landmark deal for our partnership. The UK faces a significant shortfall in quality homes to rent and our first investment in single-family housing at Springstead Village will help meet this demand, aligning social and economic value with long-term returns for Partner Funds in a UK growth sector.
“The investment is a clear demonstration of the power of LGPS pooling to unlock access to strong investment opportunities across the UK. Our UK Real Estate Fund, the largest of its kind in the LGPS, seeks to direct long-term capital into the UK, delivering stronger returns that support the efficient payment of pensions for millions of local government workers.”
Image: Border to Coast and Aberdeen
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