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Legal & General, NatWest pension scheme form £500m later living jv

Legal & General has entered into a 15-year joint venture with NatWest Pension Trustee Limited (NWPTL) to invest £500m of equity to build later living communities to be developed and operated by the former’s Inspired Villages subsidiary.

As part of the jv, Legal & General has sold a 50 per cent stake in Inspired Villages’ first 11 sites to NWPTL based on an enterprise value of over £300m, allowing it to reinvest equity to support its future pipeline.  

NWPTL - the defined benefit pension scheme of NatWest - has also committed to acquiring all the developed fully occupied villages outright, placing them into an operational fund. 

“This new partnership with Legal & General and Inspired Villages aligns perfectly with our ambitions to invest in areas that present strong social and environment credentials, whilst offering a good match for our long-dated liabilities,” said NWPTL chief executive Robert Waugh.

Legal & General said the deal would enable Inspired Villages to work towards its commitment to back a portfolio of 34 sites - equating to around 5,100 homes, 8,000 residents and an estimated development value of £4 billion.

“It is fantastic to be partnering with NatWest Group Pension Fund who are aligned in this purpose.  This transaction is unique as it sees one of the largest UK pension funds investing directly into UK private social infrastructure,” said Legal & General Capital chief executive Laura Mason.

“Broadening the range of growth assets that pension money can access is an important step forward for the UK’s growth agenda and economic future, allowing our country’s savings to support the UK in building back better, address climate change and tackle the major issues society is facing.  We hope to see further deals like this follow,” she added.

Inspired Villages currently has six operational villages with 919 residents and four sites under construction.  

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