L&G has formed a new partnership with Japan’s Nomura Real Estate Development to deliver more than 1,000 rental homes following the acquisition of their first site in Herne Hill, Lambeth.

The initial development will deliver more than 200 residential homes, with 35% designated as affordable housing. The development will also feature a range of amenities, including landscaped communal gardens, coworking spaces and a gym.

The partnership will initially target sites in central London, focusing on brownfield and underutilised land to “help regenerate communities and maximise the delivery of sustainable, high-quality homes,” the partners said at the announcement.

Over the next five years, the partnership aims to deliver an initial 1,000 homes across a range of sites, with all properties to be developed and operated by L&G.

“This announcement further exemplifies our growth ambitions coming to fruition. Our residential platform is one of the longest standing foundations of our private markets capabilities and will continue to be a strategic driver of growth,” L&G Global Head of Private Markets Bill Hughes said in a statement. “Through long-term global partnerships, such as this, we continue to deepen our international presence, and deliver on our strategy to attract third-party capital to co-invest in our private assets.”

L&G launched its build-to-rent strategy in 2016 and since then has deployed more than £3B in the BTR sector, delivering more than 10,000 rental homes. This strategy forms a key part of its growing residential platform, which is one of the largest in the UK.

Last year, Japanese real estate giant Nomura Real Estate Development said that it aimed to generate over 15% of group profits from its overseas business by fiscal year 2031, with plans to invest around £2.8B in its overseas business by the financial year ending March 2031.

In the UK, Nomura has principally been involved in commercial real estate, and in February, the company announced the completion of the large-scale renovation of the 54,400 SF 127CXR office building on Charing Cross Road in London’s West End, which it acquired in 2021.

Nomura operates globally and has offices in China, Thailand, Vietnam, Singapore, Hong Kong, the U.S., the UK and the Philippines.