Japan’s Nomura Real Estate is entering the UK rental home market through a new partnership with Legal & General, the London-headquartered financial services and asset management firm.
Reuters reports the partnership is planning to build more than 1,000 rental homes in a nation where housing demand far exceeds supply. The first project in this endeavor will be the creation of more than 200 homes at a site in south London, while the additional houses will be constructed at other sites over a five-year period.
L&G is seeking to expand its UK rental homes business and now has 23 projects across 15 cities. Nomura is the latest global real estate company to take an interest in the UK rental home market, following US firms Blackstone and PGIM into this sector.
“This is a significantly under-supplied market,” said Bill Hughes, global head of private markets at L&G, citing Nomura’s prominence in design and development efficiency as an asset. “We expect we’ll learn things from Nomura due to their experience.”
