Boarder to Coast Pensions Partnership, the UK’s largest local government pension scheme (LGPS), will invest £70m to fund a single-family rental development in Cambridge by Bellway and Latimer.
CGI of Bellway and Latimer’s Springstead Village scheme, Cambridge.
Border to Coast, which was advised by Aberdeen Investments, will forward-fund the construction of 93 houses and 46 apartments at Springstead Village in its first investment in single-family housing.
The investment comes from the pool’s UK Real Estate Fund, which has so far attracted £2bn of commitments from 10 of Border to Coast’s partner funds since its launch in October 2024.
Alongside the homes, Bellway and its joint venture partner Latimer, which is part of Clarion Housing Group, plan to develop a new primary and secondary school plus green spaces and allotments.
The joint venture is targeting minimum Energy Performance Certificate ratings of ‘B’ for the homes.
Joe McDonnell, chief investment officer at Border to Coast, 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.”
Iain Leheny, deputy fund manager at Aberdeen Investments, added: “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.”
Last week, the Ministry of Housing, Communities and Local Government launched a consultation on the creation of a new development corporation in Greater Cambridge to boost housing development and the local economy.
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