British investment manager Legal & General (L&G) has announced a commitment of up to $200 million towards U.S. rental housing, signaling increasing confidence among investors that the country’s beleaguered real estate market is on the mend.
Based in London and managing assets worth £1.1 trillion (approximately $1.4 trillion), L&G is also making a strategic investment in Taurus Investment Holdings, a private equity firm based in Boston that specializes in real estate. The details of this investment have not been disclosed.
L&G is part of a trend among British investment managers looking to expand into the U.S. commercial property sector. The U.S. market has faced significant challenges due to high borrowing costs and shifts in work patterns. However, recent indicators suggest a potential recovery is underway.
The initial $200 million commitment to Taurus will primarily target multi-family rental properties, an area that has shown resilience compared to other struggling sectors, such as office spaces.
L&G is keen to accelerate its growth in private markets, particularly in the U.S., as outlined by CEO Antonio Simoes. “Asset management is the cornerstone of our growth strategy, and scale in private markets globally is key to those ambitions,” Simoes stated.
Taurus Investment Holdings focuses on acquiring, developing, and leasing properties within the rental housing and industrial sectors, predominantly in the U.S., but also has a presence in Germany and Britain.
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