Telford Homes and Legal & General have completed a forward-funding deal to deliver a bespoke, high quality Built to Rent (BtR) development at International Way.

The parties have adopted an innovative transaction structure whereby the total consideration payable to Telford Homes is linked to the ultimate performance of the completed BtR development. The development is expected to be worth at least £150m.

Legal & General Investment Management (LGIM) will forward fund the entirety of the BtR element of the project on behalf of its Legal & General Retirement (LGR) business. Legal & General will own and operate the completed scheme which will comprise 247 purpose-built BtR homes, 54 discounted market rent homes, high-quality retail and commercial space and an exceptional amenity offering including a concierge, lobby, gym, rooftop gardens and terraces. L&G Affordable Homes will also acquire and manage the 79 London Affordable Rent homes within the project, to create a fully inclusive, multi-tenure offering, to the benefit of all residents.

Construction has started and is set to be completed during 2025.

Avison Young advised Legal & General Investment Management and Savills advised Telford Homes.

Charlie Weatherill, Capital Markets Director at Telford Homes, commented: “We’re delighted to have completed this transaction using this innovative deal structure with Legal & General, which provides genuine alignment of interests and enables us to participate in the future success of what will become a truly market-leading, inclusive Build to Rent offering in this rapidly evolving part of London. We have been keen to share in the risk and success of our BtR developments alongside our partners for some time, and this structure strikes a great balance for both ourselves and Legal & General.”

Adam Russell, Senior Residential Transactions Manager for LGIM Real Assets, added: “We’re delighted to have partnered with Telford Homes and Legal & General Affordable Homes to deliver an exemplar Build to Rent development in Stratford. The area has undergone significant regeneration and place-making in recent years and is now London’s biggest rental hub. This, alongside its future employment growth potential and transport connectivity, makes it an attractive long-term rental destination and fantastic investment opportunity.

The development’s location 800 metres from Stratford underground station, its ESG credentials, high-quality specification and first-class amenities set it apart from the competition.

With housing delivery in Newham needing to grow by 40% to meet local plan targets, International Way will make a significant contribution to tackling the borough’s housing shortage.”