PIC invests £90 million in build to rent project

London, 27 May 2021 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension schemes, is forward funding a 15-storey, 278 apartment development in Ealing, West London, its second fully-owned and self-funded Build to Rent (“BTR”) scheme. 35% of rooms within the £90 million Art Deco style building, named The Wiltern, will be affordable housing comprising 65 Discounted Market Rent and 16 London Living Rent units. The remaining 197 apartments will be for private rent. Around 400 people will be employed on site during construction, which is due to be completed by the end of 2023.

The property will be developed by Amro Partners (“Amro”), a specialist BTR and student housing developer. Henry Construction are the contractor.

PIC has invested more than £11 billion in investments across the country1 that are defined as socially beneficial and meet wider Environmental, Social and Governance (“ESG”) investment criteria, in particular creating jobs, helping the transition to a greener economy and balancing intergenerational equity. This level of investment is a beneficial outcome of an asset strategy tied closely to PIC’s purpose, because the primary function of these assets is to securely back the company’s future pension payments. With the Government currently considering how to reform Solvency II, it is vital for the UK that life insurers are able to invest more efficiently in long-term, socially beneficial projects, whilst helping UK companies de-risk.

The project will be undertaken by Amro. With a track record of residential living projects totalling £370 million Gross Development Value, Amro is targeting delivery of 1,500 multifamily housing units across Greater London over the next five years to cater for the growing demand for purpose-built rental accommodation.

Key features of the project:

• The development, ‘The Wiltern’, which is fully owned by PIC, has been purpose-designed for the Private Rental Sector. PIC will own it for the long term
• It will sit alongside the Grade II Listed Art Deco Hoover Building and will also have an Art Deco theme in keeping with the aesthetic of this iconic building
• The development is located close to Perivale Underground Station, providing access to London Bond Street via the Central Line within 24 minutes
• Once complete, the building will provide c.16,000 square feet of external amenity space and c.10,000 square feet of internal amenity space for residents, including co-working space, fitness-studio, pet spa, roof terraces, children’s play area and sports lounge

Tracy Blackwell, CEO of Pension Insurance Corporation plc, said: “This is PIC’s second BTR investment and we are delighted to be working with Amro Partners on the development. These investments are important to us because they help back our pension payments decades into the future. They are becoming increasingly important to the country because they provide much-needed housing in areas with high demand and they help regenerate our cities.

“In addition, with this development employing around 400 people over the next two and half years during construction, these sorts of projects will help the country recover from the pandemic and further the Government’s levelling up agenda. More than 1000 people are being employed across our two BTR developments, with thousands of further jobs expected as we build out our pipeline. It is vital for the country that the Government reforms Solvency II in such a way that these investments become more efficient.”

Raj Kotecha, Co-Founder and Managing Director at Amro Partners, said: “We look forward to working collaboratively with PIC, a blue-chip institutional funding partner, and our appointed main contractor Henry Construction, to deliver this exceptional building. Sitting alongside the iconic Hoover Building, The Wiltern will draw on its Art Deco aesthetic to create a highly sustainable new landmark in a historic West London location with growing demand for high quality housing.”

PIC was advised by Jones Lang LaSalle, Addleshaw Goddard, WSP and HAALO. Amro Partners was advised by Savills and DLA Piper.

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Notes to Editors:

1)    These investments include social housing (£2 billion invested); renewable energy (£1.3 billion invested); and the UK’s education system (£1 billion invested)

2)    For further information please contact:

Pension Insurance Corporation      

Jeremy Apfel                         
+44 (0)20 7105 2140  
apfel@pensioncorporation.com

Amro Partners                                 

Sarah Lawrence                     
+44 (0)7984 422 461 
sarah@lawrencepr.co.uk

About Pension Insurance Corporation
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At 31 December 2020, PIC had insured 273,500 pension scheme members and had £49.6 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com

About Amro Partners

Amro Partners is a leading real estate company investing in residential real estate and transformational technology to create inclusive, connected communities.

Driven by a firm commitment to ESG principles, Amro specialises in the BTR and student housing sectors in the UK and Iberia, with a strong track record of projects totalling £370M GDV.

Through its Venture Investments, Amro invests in technology start-ups that drive transformational change within three key areas of the property sector: financial inclusion, sustainability and wellbeing.

Visit www.amropartners.com