I
n a major coup for the UK rental market, Nomura Real Estate has partnered with Legal & General to build over 1,000 homes in Britain's underserved rental sector. This marks Nomura's first foray into the UK market, where demand far outstrips supply, and follows a trend of increasing foreign investment from firms like Blackstone and PGIM.

    The partnership will focus on developing sites in central London, targeting brownfield and underutilized land to create much-needed housing stock. With an initial investment of hundreds of millions of pounds, Nomura will provide the majority of capital, while Legal & General will contribute the remainder.

    "This is a significantly underserved market," said Bill Hughes, global head of private markets at Legal & General. "We're excited to learn from Nomura's expertise in design efficiency and large-scale development."

    The deal highlights the growing appeal of the UK rental market for institutional investors, who are seeking long-term returns and playing catch-up with more established markets like Germany and the US.

    As part of its expansion plans, Legal & General is targeting 15 UK cities with 23 complete or under-development schemes. The partnership with Nomura will be a key driver in achieving this goal, as the two companies work together to deliver much-needed housing stock across the country.