Pension Insurance Corporation has completed a £130m deal to buy a build-to-rent scheme at Peel L&P’s Wirral Waters.
PIC has purchased 500 flats at the Liverpool waterfront regeneration through a long-term lease with Wirral Metropolitan Borough Council.
The structure will see PIC let the building for 50 years, with annual rent increases linked to inflation, providing long-term cashflows to match policyholders’ pension payments.
This BTR capital receipt will provide finance for the council, stimulating the wider development, but without exposing WMBC to the risk of development. Peel L&P will continue to act as developer for the project, taking the occupational and delivery risk.
The Wirral Waters project is a central government supported scheme to create a new waterfront neighbourhood, creating 20,000 jobs in Wirral.
PIC’s BTR scheme will include 100 affordable homes, let at 80% of market rents. The buildings will be rated at least BREEAM Excellent.
James Agar, head of long income at PIC, said: “We hope that the regeneration lease structure can be adapted across a range of sectors and projects, on behalf of local authorities, housing associations, universities, NHS trusts and other organisations looking to unlock funding for regeneration schemes around the country.”
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