Legal & General has acquired a new Build To Rent (BTR) site in Chelmsford City Centre.

Contracts were exchanged for the site, which was purchased on behalf of the company's UK Property Fund ('The Fund').

The BTR site, known as Chelmer Waterside, forms part of a major mixed-use development in Chelmsford which will provide a landmark urban regeneration scheme for the city, comprising 421 residential apartments, associated landscaping and local retail amenities. Taylor Wimpey will develop the BTR homes, which will consist of 104 studio, one, two and three bedroom apartments in two adjoining Freehold blocks.

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This acquisition marks the first BTR scheme for The Fund, and will sit alongside recent investments in hotels, healthcare and student accommodation.

Matthew Jarvis, Senior Fund Manager, UK Property Fund, at LGIM Real Assets, said: "This acquisition is in line with our strategy for the UK Property Fund to increase our exposure to alternative operational assets, whilst demonstrating the breadth of our wider fund management platform which has enabled us to collaborate with our well established BTR team. As we continue to actively diversify our holdings into more alternative sectors, Build to Rent will remain a preferred subsector alongside operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with a robust rental growth story.

"Chelmsford in particular has strong location dynamics, benefitting from a 40% increase in average prices over the last 10 years, according to the UK HPI. With excellent commuter links to London, it is also set to experience notable population growth, placing further demand on housing."

(CM)