UK’s largest local government pension pool invests £70m to build single-family rental homes in Cambridge in a landmark deal
11 February 2026Border to Coast Pensions Partnership, the largest UK Local Government Pension Scheme (LGPS) pool, has exchanged on the forward funding of 139 single-family rental homes at Springstead Village, Cambridge.
The transaction, advised by Aberdeen Investments, will see more than £70m invested into the construction of 93 houses and 46 apartments in the development. The investment comes from the pool’s UK Real Estate Fund, into which 10 of Border to Coast’s Partner Funds have committed £2bn since October 2024.
A landmark deal for the LGPS pool, it demonstrates how pooling enables UK local government pension funds to invest directly in new markets that have previously been difficult for them to access, unlocking significant opportunities and supporting UK growth.
It also marks Border to Coast’s first investment into single-family housing, a focus of its UK Real Estate Fund.
Situated within Springstead Village, a joint venture between Bellway and Latimer, part of Clarion Housing Group, the homes will benefit from a community primary and secondary school community hub, green spaces and allotments as part of the wider development masterplan. All of the homes will be operationally efficient with attractive ESG characteristics, each home having a minimum EPC B rating, placing the building in the top tier of energy efficiency and minimising costs to tenants.
Joe McDonnell, Chief Investment Officer, Border to Coast Pensions Partnership, said:
“This is a landmark deal for our partnership. The UK faces a significant shortfall in quality homes to rent and our first investment in single-family housing at Springstead Village will help meet this demand, aligning social and economic value with long-term returns for Partner Funds in a UK growth sector.
“The investment is a clear demonstration of the power of LGPS pooling to unlock access to strong investment opportunities across the UK. Our UK Real Estate Fund, the largest of its kind in the LGPS, seeks to direct long-term capital into the UK, delivering stronger returns that support the efficient payment of pensions for millions of local government workers.”
Iain Leheny, Deputy Fund Manager, Aberdeen Investments, says:
“A lot of the UK’s housing stock is aging and hasn’t adapted to how people live today, with the country facing a shortage of good quality, modern housing, while home ownership is also increasingly out of reach for many.
“The private rental market is a vital part of the housing ecosystem and build to rent accounts for just 2% of stock - well behind our international peers.
“Springstead Village is the perfect example of the housing stock we want to invest in, combining high quality homes with growing local infrastructure. A lot of care has been taken in the design to make it feel like the kind of place tenants want to move to, with easy access to Cambridge’s tech and life sciences hub, bringing high convenience for busy families.”
Cambridge an outstanding location
Cambridge is an outstanding location for build-to-rent (BTR) development, underpinned by a shortage of new good quality housing stock, combined with a highly skilled workforce.
The city is home to a number of large, high-tech businesses in area known as “Silicon Fen” or the “Cambridge Cluster”, with key local employers including those in the Cambridge Science Park and Cambridge Biomedical Campus, which anchor the UK’s ‘Golden Triangle’ of Life Sciences.
Ends
Media enquiries
Louise Hill
Communications Manager, Border to Coast
louise.hill@bordertocoast.org.uk
0113 733 3201
Jemma Jackson
Head of Campaigns and Media, Aberdeen
07776 204 610
Yoosof Farah
Campaigns and Media Relations Manager, Aberdeen
07345 441 771
Notes to editors
About Border to Coast Pensions Partnership
Based in Leeds, Border to Coast is the largest LGPS (Local Government Pension Scheme) pool in the UK. It is owned by 11 Local Government Pension Schemes funds (‘Partner Funds’) which collectively represent nearly 3,000 employers and over 1.1 million members. The Partner Funds are Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne and Wear and Warwickshire.
The Partner Funds have c.£65.3bn in investments, of which Border to Coast is directly responsible for the management or oversight of £55.4bn (as of 31 March 2025).
In October 2025, Border to Coast confirmed seven further LGPS funds would join the partnership following the outcome of the Government-led ‘Fit for the Future’ consultation. The seven funds (Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire, and West Sussex) represent 900,000 members employed at 2,500 participating employers with c.£45bn of assets.
As of April 2026, the 18 Partner Funds will have more than £110bn of assets, strengthening the Border to Coast partnership’s ability to harness scale to be more effective, more resilient, and more impactful.
Border to Coast Pensions Partnership Ltd is authorised and regulated by the Financial Conduct Authority. Registered in England Number: 10795539 and Registered Office: 5th Floor, Toronto Square, Toronto Street, Leeds, LS1 2HJ.
www.bordertocoast.org.uk
About Aberdeen Investments:
Aberdeen Investments is a specialist asset manager that focuses on areas where we have both strength and scale across public and private markets, including credit, specialist equities and real assets.
Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
As at 31 December 2025, Aberdeen Investments managed c.£390.4bn on behalf of clients, including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.
www.aberdeeninvestments.com
About Aberdeen Group
Aberdeen is a leading Wealth & Investments group, working to help millions of customers and clients turn their financial goals into reality. As at 30 September 2025, Aberdeen managed and administered c.£542bn of client and customer assets across its three core business, interactive investor, Adviser and Investments.
www.aberdeenplc.com
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