The financial services giant has bought a site in Mustard Wharf from U+I in partnership with CTP.
The site in Granary Wharf has planning permission for 250 homes as well as 8,640 sq ft of commercial and amenity space. L&G expects to start work on the £60m scheme in early 2018, with completion expected in early 2020.
L&G’s total investment capability for the Build to Rent (BTR) sector stands at around £1bn.
It has raised capital from major pension funds for an open-ended BTR fund, as well as a £600m JV (joint venture) investment by Legal & General Capital and PGGM.
Dan Batterton, BTR Fund Manager at LGIM Real Assets, said: “In our view, Mustard Wharf is the ideal location for a BTR scheme in Leeds.
“It is close to major transport links and local amenities, and complements the wider regeneration of the local area, supporting job growth and the local economy over the long term.
“We are excited that we are going to create a new standard of rental accommodation and service in a thriving community.”
James Lidgate, director of housing at Legal & General Capital, said: “This latest acquisition supports our vision of investing in long term sustainable urban schemes that support wider urban regeneration to transform and reshape Britain’s landscape, bringing jobs and housing back into the centre of cities.”