One of the UK’s largest pension funds, Nest, just injected £1 billion into build-to-rent properties.

Here’s the deal:

• Nest is teaming up with Legal & General (L&G) and Dutch pension fund PGGM in a landmark agreement.
• The initial investment is £350 million, focused on developing and managing rental properties in prime city centre locations.
• This move is driven by a severe housing shortage and a surge in demand for top-notch rental homes.

Why this matters to YOU:

• Skyrocketing demand: The build-to-rent sector is on fire, with Savills reporting a record £4.5 billion investment last year.
• Future-proof your portfolio: Experts predict a whopping £300 billion investment will be needed by 2031 to meet the growing demand for rental properties.
• Government backing: The government is actively encouraging pension funds to invest in UK housing, aiming for an extra £8 billion in domestic assets.

The Big Players:

• Nest, established in 2012, currently manages a hefty £43 billion in assets.
• L&G and PGGM are seasoned build-to-rent players, having already invested over £3 billion in the sector, delivering over 10,000 new homes.

Elizabeth Fernando, Nest’s chief investment officer, highlighted the two-pronged benefit:

“By building more properties, we can extend to our members a great investment opportunity while helping to meet this demand and bolster the rental market.”