Border to Coast invests €82m in Cambridge rental homes

UK government pension scheme Border to Coast Pensions Partnership is investing over £70 mln (€82.3 mln) to forward fund the construction of 139 single-family rental homes in Cambridge's Springstead Village.

Springstead Village, Cambridge - Border to Coast

This investment, advised by Aberdeen Investments and sourced from Border to Coast's £2 bn (€2.35 bn) UK Real Estate Fund, marks the local government pension scheme (LGPS) pool's first venture into single-family housing. It highlights how pension pooling allows local government funds to access new investment markets, fostering growth in the UK.
The new development, a collaboration between Bellway and Latimer (part of Clarion Housing Group), will feature 93 houses and 46 apartments. These homes are designed for operational efficiency with ESG credentials, each boasting a minimum EPC B rating for energy efficiency and lower tenant costs. Springstead Village will also include a primary and secondary school, a community hub, green spaces, and allotments.
Cambridge is an ideal location for build-to-rent (BTR) projects due to a shortage of quality housing and a highly skilled workforce. The city, known as "Silicon Fen," is a hub for large high-tech and life sciences businesses, with major employers in the Cambridge Science Park and Cambridge Biomedical Campus.
Joe McDonnell, CIO, Border to Coast Pensions Partnership, said: “This is a landmark deal for our partnership. The UK faces a significant shortfall in quality homes to rent, and our first investment in single-family housing at Springstead Village will help meet this demand, aligning social and economic value with long-term returns for Partner Funds in a UK growth sector.” 
Iain Leheny, deputy fund manager, Aberdeen Investments, added: “A lot of the UK’s housing stock is ageing and hasn’t adapted to how people live today, with the country facing a shortage of good quality, modern housing, while home ownership is also increasingly out of reach for many. The private rental market is a vital part of the housing ecosystem, and build-to-rent accounts for just 2% of stock – well behind our international peers.