PIC, a specialist insurer of defined benefit pension funds, is pleased to announce the practical completion of Arbour, a landmark Build-to-Rent scheme located in the heart of central Milton Keynes. The £80 million redevelopment of a brownfield site provides 306 residential apartments purpose-designed for rent, 43 of which are offered at a discounted market rate.
The building, formally a vacant office block known as ‘Bowback House’, is fully owned by PIC, which will use the rental cashflows to help underpin the company’s future pension payment obligations to its policyholders. The development is part of PIC’s wider investment in UK housing and infrastructure, which totals over £13 billion to date, including more than £3 billion in social housing.
Arbour was developed by HG Living, a specialist developer of Build-to-Rent homes, with HG Construction (‘HGC’) as contractor.
The highly energy efficient homes incorporate a range of clean energy technologies, including air source heat pumps and solar panels. The development will also create social value in the centre of Milton Keynes. For example, the residents of Arbour will be able to buy directly from local businesses through a special ‘Arbour app’.
Future new properties upcoming on the ‘Homes by PIC’ platform, from 2025, include 278 homes at The Wiltern in London, and 667 homes at One Eastside in Birmingham.
Steve Hollands, Head of Build-to-Rent Acquisitions at Pension Insurance Corporation, said: “We are proud to launch our next Build-to-Rent development which will benefit the neighbouring community in Milton Keynes. 43 of the apartments will also be made available at a discounted rent to key workers and those on lower salaries. The city’s strategic geographical location, excellent transport connections and its strong economy provide key attributes that will help pay the pensions of our policyholders for decades to come.
“Arbour aspires to set a new benchmark for rental living within the city, including over an acre of green spaces and an exceptional amenity offering for the exclusive use of its residents including a gym, concierge, co-working space and lounge. PIC continues to actively seek to invest in the living sector in order to deliver much needed housing accommodation across the UK.”