L&G, PGGM and Nest acquire Lambeth Hospital site to deliver £350m scheme for hundreds of new rental homes

Legal & General (‘L&G’) today announces it has exchanged contracts with the NHS, acquiring a c.6‑acre brownfield site between Clapham, Stockwell and Brixton to deliver a £350 million Build to Rent (‘BTR’) neighbourhood of approximately 700 homes, including private and affordable homes, subject to planning. The acquisition is being made through the Access Development Partnership (‘ADP’), L&G’s joint venture with PGGM and Nest, and marks the partnership’s second UK acquisition within a year, underscoring its role in mobilising long‑term pension capital to unlock regeneration that aims to deliver clear community benefit and financial returns for investors.

Situated in one of London’s most supply‑constrained boroughs, the Lambeth Hospital site offers a rare inner‑London brownfield regeneration opportunity, where demand outpaces delivery. Local constraints reflect the wider market: rolling annual construction starts in London fell to their lowest since 2010, with 23 of 33 boroughs recording no starts in Q1 2025, signalling further pressure on future delivery¹.  Across England, net additional dwellings also declined to 208,600 in 2024/25 (‑6% year‑on‑year), the lowest since 2015/16².  Although rental growth eased in late 2025, the market remained tight after a period in which UK private rents rose 7.7% year‑on‑year to March 2025³.  Together, these dynamics underline why large, well‑capitalised brownfield schemes that can deliver through cycles, such as this, are critical to stabilising supply.

Working with the public sector is central to the project’s wider social outcomes. Proceeds from the NHS land sale are intended to be reinvested into modern healthcare facilities, including the New Douglas Bennett House at Denmark Hill, a purpose‑built home for services currently at Lambeth Hospital, supporting improved mental health services, therapeutic environments and a better experience for patients, carers and staff – aligning the delivery of new homes with improved health infrastructure for local communities.

The masterplan aims to deliver a mixed‑tenure neighbourhood, providing affordable housing alongside private rental homes, with new resident amenities and thoughtfully designed public realm. In line with L&G standards, the completed neighbourhood is expected to include co‑working areas, a residents’ lounge and a gym. Reflecting the partnership’s focus on sustainability and well‑being, the scheme is expected to pursue an all‑electric design and support healthier living with green spaces and improved active travel connections. The scheme will be operated by L&G on completion, leveraging its national residential platform that aims to deliver consistent high-quality service and long‑term stewardship.

Dan Batterton, Head of Housing, Asset Management, L&G: “The redevelopment of the Lambeth Hospital site is a flagship example of the power of pension capital to address the chronic lack of housing supply by delivering large scale schemes in the areas that need them most, whilst also meeting the investment needs of our Pension Fund clients. Underpinned by long‑dated institutional capital, L&G is able to look beyond short‑term market cycles and commit to multi‑phase regeneration, giving partners and local authorities confidence in delivery at scale over the longer term. As a cornerstone of our asset management strategy, we have ambitious plans to accelerate the growth of our Housing platform and support the delivery of new homes across the UK.”

As a leading direct investor, developer, and operator of residential property, L&G has one of the largest and most diverse housing platforms in the UK. Through long-term institutional investment and strong public-private partnerships, it is able to deliver homes at pace, supporting local economies and meeting long‑term investment objectives for its clients. The regeneration of the Lambeth Hospital site is the 26th acquisition in L&G’s BTR portfolio. L&G has deployed over £4 billion of capital into the UK BTR sector, delivering more than 10,000 homes, including 2,000 in London.

Jane Bailey, Chair, South London and Maudsley NHS Foundation Trust: “This is incredibly good news that will mean a host of benefits for not only the provision of mental health services locally but also the wider community. This is a wonderful opportunity to invest and transform for both the Trust and the local community. I know from speaking with colleagues how important this decision is and what it means for us as a Trust in allowing us to move forward.”

Dirk Bootsma, Senior Director, Private Real Estate, PGGM: “The acquisition of the Lambeth Hospital site is a great addition to our Residential development partnership with L&G. This underlines our commitment to deliver strong financial returns for the participants of our client Pension fund Zorg en Welzijn (PFZW). We see the social value of realising new, high-quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”

Matthew Forward, Senior Investment Manager, Nest: “ We’re really pleased to be embarking on this next investment, building on a partnership that aligns closely with Nest’s long-term approach to real estate. The scheme will support the provision of affordable homes for social rent, helping to encourage a broader mix of housing in Lambeth. At the same time, the all-electric design reflects our commitment to lower carbon living and to backing high-quality, future-ready homes. This is exactly the kind of investment we look for, one that can make a positive contribution locally while delivering the resilient, attractive returns our members rely on over the long term.”

About L&G
Established in 1836, L&G is one of the UK's leading financial services groups and a major global investor, with £1.1 trillion in total assets under management (as at HY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.

About Nest
Since its creation in 2012, following the introduction of auto-enrolment, Nest gives every UK worker somewhere good to save. Since then, it’s grown to become the largest workplace pension scheme in the country with around 14 million members. One in three of the working population has a Nest pension pot. By 2030, we expect that number to grow to half of the entire UK workforce.  

Nest’s members benefit from an award-winning investment strategy and one of the most diversified DC portfolios in the industry. It practises responsible investment that aims to deliver long-term growth while carefully managing risk.  

Nest invests £60 billion in assets on its members’ behalf. It takes around £600 million a month in new contributions, and that figure is expected to rise. By 2030, Nest will have close to £100 billion invested on its members’ behalf.

About PGGM Investment Management 
PGGM Investment Management is part of the Dutch not-for-profit pension fund service provider PGGM. It fulfils a social mandate: the sustainable investment of the pension capital of around three million participants of PFZW, the pension scheme for the Dutch health and welfare sector. On 31 December 2025, PGGM IM managed EUR 258 billion in public and private markets globally.  

More information about PGGM IM: annual-report-pggm-vermogensbeheer-b-v-2024.pdf

1 CBRE London Residential New Build Report – May 2025, using Molior data.
2 MHCLG, Housing supply: net additional dwellings, England: 2024 to 2025.
3 Office for National Statistics (ONS), Private rent and house prices, UK: January 2026.