The West Midlands Combined Authority (WMCA) has agreed a partnership deal with Legal & General that will see L&G invest £4bn in regeneration, housing and levelling up across the West Midlands.
The agreement is L&G’s first with a combined authority. It is the UK’s largest investor, with £1.4 trillion under management. L&G has already invested over £2bn in the WMCA’s region, including the £210m Birmingham Health Innovation Campus and multiple housing projects.
The WMCA has signed similar partnership agreements with organisations such as Lovell and St Modwen.
The combined authority said that, alongside investment into new commercial developments, the agreement envisages a major contribution by L&G into climate-friendly projects, local communities and social and affordable housing, including build-to-sell and build-to-rent.
The agreement will also support the region’s target to deliver 215,000 new homes by 2031, as set out in its Housing Deal with Government in 2018, and the WMCA’s drive for wider inclusive growth.
The first scheme for the partnership will be The Junction, a brownfield site in Oldbury which has lain empty for more than 20 years. The development will deliver 234 energy efficient new homes of which nearly 50% will be for affordable housing under the WMCA’s local definition.
Andy Street, Mayor of the West Midlands and chair of the WMCA, said: “The unveiling of this £4bn partnership agreement with L&G is a prime example of how the West Midlands is getting on and delivering Levelling Up. This major investment will help regenerate long neglected areas across the West Midlands, provide affordable homes in the communities where the need is most felt, and supercharge economic growth in the years ahead.
“The scale of the ambition L&G is showing is evident in both the huge sums involved and the breadth of projects envisioned. It is a tremendous vote of confidence in the future of our region from one of the world’s biggest investors, and I am delighted L&G came to the table and agreed such a monumental commitment with us.
“I cannot wait to see this investment rolled out, projects underway, and the lives of our residents changed for the better.”
Sir Nigel Wilson, CEO of L&G, added: “We have been investing across the UK in partnership with cities and universities for a decade. It’s part of our ‘Inclusive Capitalism’ approach and has delivered terrific economic and social results. With Andy and his colleagues as ambitious partners at WMCA, we can take this to a new level.
“The West Midlands economic plan, resources and skills make it an attractive destination for trade and investment from across the world; our role in this is to put UK funds including pension savings to work here so UK savers benefit from UK prosperity.”