HG Living has signed a deal with Pension Insurance Corporation plc (‘PIC’), a specialist insurer of defined benefit pension schemes, to develop PIC’s third Build-to-Rent project. The £80m investment by PIC will see a brownfield site in central Milton Keynes transformed into 306 new residential apartments, 43 of which will be affordable housing, including onsite tenant amenity space.
The Milton Keynes development will involve the demolition of an existing vacant office block known as Bowback House, and will employ around 750 people on site during construction. HG Construction will be the main contractor on the scheme, which is due to complete in Q3 2024.
HG Living (HGL) is a specialist developer of BtR homes and purpose-built student accommodation (PBSA). The company is currently committed to delivering 1,500 multifamily housing and PBSA units and is actively pursuing UK wide expansion in these sectors to cater for the growing demand for purpose-built rental accommodation.
The Milton Keynes development is on the site of a vacant office block known as ‘Bowback House’ and is targeting a 4* Homes Quality Mark rating, a minimum gold WiredScore rating and all apartments to achieve a minimum EPC rating of ‘B’. The scheme will provide c.25,500 square feet of external amenity space and c.10,000 square feet of internal retail / amenity space for residents, including 24-hour concierge, residents’ lounge, gym, fitness studio, sky lounge and multi-use games room.
Rob Greaves, Development Director of HG Living, said: “We are delighted to be working with Pension Insurance Corporation on this project, which will be delivered in the spirit of true partnership with PIC. HG Living and HG Construction have an enviable track record of delivering projects with certainty for our institutional funding partners and creating high quality, sustainable living spaces that will make a positive long-term contribution to local communities. The Build-to-Rent sector has an important role in addressing the current housing shortage and we are pleased to play our part in bringing urgently required homes to the market at scale and at speed.”
Delphine Deasy, Head of Real Assets at Pension Insurance Corporation “We are excited to be forward funding 306 residential units in Milton Keynes in partnership with HG living and HG Construction. The BTR scheme is centrally located and will provide energy efficient homes designed to a high specification. This investment, which represents Pension Insurance Corporation’s 3rd BTR acquisition, fits within PIC’s purposeful investment strategy of deploying capital into socially beneficial investments in the UK. PIC intends to retain the ownership of the scheme for the long-term, using the rental cashflows to back the pension payments of our policyholders.”