Giant council pension fund enters suburban build-to-rent with £70m deal

The investment comes from the pool’s UK Real Estate Fund, to which 10 of Border to Coast’s partner funds have committed £2bn since October 2024.

Springstead Village is a joint venture between house builders Bellway and Latimer, part of Clarion Housing Group. The wider scheme includes a primary and secondary school, green spaces and allotments.

The deal was advised by Aberdeen Investments. Last week, Inside Housing Living interviewed Aberdeen’s residential fund manager Robert McDonnell on sentiment in the UK build-to-rent market.

Joe McDonnell, chief investment officer at Border to Coast Pensions Partnership (and no relation of Robert), said: “The investment is a clear demonstration of the power of local government pension scheme pooling to unlock access to strong investment opportunities across the UK.

“Our UK Real Estate Fund, the largest of its kind in the local government pension scheme, 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, said: “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.”