Nomura Real Estate enters UK housing market partnership

Nomura Real Estate, one of Japan's largest property developers, has made a significant move into the UK housing market. The company has partnered with Legal & General to create over 1,000 homes for rental. This is Nomura's first entry into the UK's rental sector, which is experiencing a high demand for housing. The UK rental market has attracted attention from foreign investors, including major U.S. firms like Blackstone and PGIM. Legal & General noted that there is a strong potential for long-term returns in this market. The partnership has already secured its first site in south London, where they will build more than 200 homes. Over the next five years, the remaining homes will be developed across various sites. Bill Hughes, L&G’s global head of private markets, highlighted that the UK market is currently under-supplied. He expressed optimism about learning from Nomura’s experience, especially in design and large-scale development. Nomura will be the main investor in this venture, putting in hundreds of millions of pounds, while L&G will supply the remaining funds. The partnership plans to focus on central London, using brownfield and underutilized land for their developments. L&G, which has deepened its ties with Japan through this deal, also has experience working with other Japanese firms, including Mitsubishi Estate. The company aims to grow its rental home business, currently managing 23 projects in 15 UK cities.