Nomura Real Estate Enters UK Rental Market with Major Housing Initiative
LONDON — Nomura Real Estate of Japan signed a deal with Legal & General. The two firms plan to build over 1,000 homes. Nomura makes its first move into the UK rental market. The market now suffers from a shortage of housing.
Growing Investment in UK Rental Market
The UK rental market draws more foreign investors. US companies like Blackstone and PGIM invest in many property projects. These investors hope for steady returns. In markets such as Germany and the United States, large landlords hold a stronger position.
Initial Project in South London
Nomura Real Estate and L&G chose a site in south London. They will build more than 200 homes in that area. The rest of the homes will come on other sites over the next five years. L&G executives shared this plan with Reuters. Bill Hughes, head of private markets at L&G, said the market lacks enough homes. He praised Nomura for their many years of work in Japan with design work and building many homes at once.
Financial Commitment and Strategic Focus
Nomura Real Estate comes from the well-known Nomura bank in Japan. The firm will spend hundreds of millions of pounds on this project. Most funds come from Nomura, while L&G adds the rest. The companies did not reveal more details. L&G will begin by building on central London sites. They choose brownfield and underused land. Their goal is to add more homes in busy parts of the city. The British firm will also manage the new homes once construction finishes.
Strengthening Ties with Japan
This project builds stronger links with Japanese companies. L&G has worked with firms from Japan before. A recent sale and tie-up with Meiji Yasuda add to that record. L&G also joined with Mitsubishi Estate on several projects in the UK. It now runs 23 projects in 15 UK cities. Last year, L&G sold its housebuilder arm CALA and now focuses on rental developments.
Conclusion
Nomura Real Estate starts its first UK rental project with this deal with Legal & General. The project shows a clear trend of foreign investment in UK housing. The group plans to meet the need for more rental homes in a market that lacks supply. For property investors and stakeholders, this move reveals many new chances in the long-term rental market.
Sources
- Reuters – Nomura Real Estate strikes deal with L&G for UK homes
- UK Government – Housing Supply Track Record and Statistics
- Business Insider UK – UK Property Market Insights
- PropertyWeek – Legal & General’s UK Rental Sector Expansion
By following these developments, investors who work with properties, especially in the House in Multiple Occupation (HMO) area, can understand the changes in the UK rental market.
