Nomura Real Estate Development is aiming to enter the build to rent market and will work in joint venture with L&G, which will operate the properties.

The partnership has acquired its first site in south London to build more than 200 homes, with the remainder of the homes planned to be delivered across other London sites over five years.

The site in Herne Hill, located in the London Borough of Lambeth, will be designed to meet leading standards in energy efficiency and sustainable performance.

Dan Batterton, Head of Residential, L&G: “This partnership demonstrates the attractiveness of the UK residential market for international investors, such as Nomura.

“We are thrilled to be joining forces with one of the biggest and best apartment developers in Japan, pooling our expertise as leaders in our respective markets.

“Having launched our BTR strategy in 2016, we’ve accumulated almost a decade of experience in the UK rental market.

“This extensive knowledge allows us to offer partners unparalleled insights and the advantages of our economies of scale to deliver high-quality rental accommodation at pace. Our combined knowledge and best practices will no doubt deliver exceptional new homes.

“This partnership is a great example of how we can bring international capital into the UK to drive up delivery of much-needed homes, across all tenures. Institutional investment has an important role to play, and we expect investor demand in UK housing to continue to grow as the Government continues to look to meet its housing targets.”

Since launching the strategy in 2016, L&G has deployed over £3bn of capital into the build to rent sector, delivering more than 10,000 rental homes.