L&G joint venture buys Lambeth Hospital site to deliver 700 build-to-rent homes

L&G said it expects to consult on “modest refinements” to the existing plans, which were designed by ESA Architecture and include nine buildings varying from three to 18 storeys in height.

L&G said that “large, well‑capitalised brownfield schemes that can deliver through cycles” are “critical to stabilising supply” in London, where the number of construction starts for new homes is at the lowest since 2010.

It is the Access Development Partnership’s second acquisition in the UK within a year, following a brownfield site in Deansgate, Manchester, which will be developed into a 494-home BTR tower.

Proceeds from the NHS land sale are intended to be reinvested into modern healthcare facilities, including the New Douglas Bennett House at Denmark Hill, a purpose‑built home for services currently at Lambeth Hospital, supporting improved mental health services, therapeutic environments, and a better experience for patients, carers and staff.

The masterplan aims to deliver affordable housing alongside private rental homes, with new resident amenities and public realm. It is expected to include co‑working areas, a residents’ lounge and gym.

The scheme is expected to pursue an all‑electric design and will be operated by L&G on completion. The site is the 26th acquisition in L&G’s BTR portfolio.

Dan Batterton, head of housing at L&G, said: “The redevelopment of the Lambeth Hospital site is a flagship example of the power of pension capital to address the chronic lack of housing supply by delivering large-scale schemes in the areas that need them most, while also meeting the investment needs of our pension fund clients.

“Underpinned by long‑dated institutional capital, L&G is able to look beyond short‑term market cycles and commit to multi‑phase regeneration, giving partners and local authorities confidence in delivery at scale over the longer term.

L&G has deployed over £4bn of capital into the UK BTR sector and delivered 10,000 homes, including 2,000 in London.

Last month, Inside Housing Living interviewed Mr Batterton about his plans to scale L&G’s housing portfolio to £10bn in assets under management by 2030.

Jane Bailey, chair of the South London and Maudsley NHS Foundation Trust, said: “This is incredibly good news that will mean a host of benefits for not only the provision of mental health services locally but also the wider community.”

Dirk Bootsma, senior director, private real estate at PGGM, said: “This underlines our commitment to deliver strong financial returns for the participants of our client pension fund Zorg en Welzijn (PFZW). We see the social value of realising new high-quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”

Matthew Forward, senior investment manager, real estate at Nest, said: “The scheme will support the provision of affordable homes for social rent, helping to encourage a broader mix of housing in Lambeth.”