L&G joint venture buys Lambeth Hospital site to build £350m build-to-rent scheme

A joint venture of institutional investors has exchanged contracts to buy the Lambeth Hospital site where it plans to deliver a £350m build-to-rent scheme.

L&G, PGGM Investment Management, which is part of a Dutch non-profit pension fund provider, and government-established pension scheme provider Nest acquired the site from the NHS through their joint venture Access Development Partnership (ADP).

ADP intends to build around 700 homes on the six-acre brownfield site, which sits between Clapham, Stockwell and Brixton in south London. The hospital is set to close with patient services mvoing to the Maudsley Hospital campus in Denmark Hill. 

A spokesperson said: “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. “

Planning permission for an earlier scheme of 580 homes was granted in December 2021. L&G expects to consult on what it describes as “modest refinements” to the existing plans. In addition to build-to-rent, the scheme will also include some affordable and private homes.

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”.