Advising Legal & General on The Slate Yard, its landmark BTR asset

When Legal & General made its first move into the UK’s build-to-rent (BTR) market in 2017, it chose Macfarlanes to acquire The Slate Yard, a flagship scheme in the heart of Salford’s New Bailey regeneration area. 

This project would represent the first step in L&G’s journey to build a £3bn BTR portfolio, and over the subsequent eight years we would work alongside L&G at every stage, assisting as they turned the development into a benchmark for the BTR sector, and a defining asset in the UK’s institutional residential market.

We advised L&G across the full life cycle of the project, providing continuous legal support and advice, including the original acquisition and financing of the land purchase, through the construction and development phase, and then the day-to-day operational support required to manage a BTR asset. Our work culminated in advising on L&G’s exit to KKR and Inhabeo in April 2025.

The opportunity

As one of the earliest high‑profile, institutionally funded BTR schemes in Greater Manchester, The Slate Yard helped establish the regional market. Its first‑mover performance provided lenders, valuers and policymakers with a credible benchmark for absorption, service standards and operational management, de‑risking the asset class for subsequent schemes. It was delivered in three phases, featuring 424 high-quality residential units, a gym, co-working spaces, resident lounges and concierge services.

The scheme incorporates significant ESG features and an approach to design that put the residents first. It has served as an influential blueprint for other institutional investors in the growing marketing for professionally-managed residential accommodation. 

Our approach

Our partner-led, single team approach enabled us to act as a trusted advisor, seamlessly delivering consistent, commercially-focused advice throughout the project. We brought together experts from our real estate, construction, corporate, tax, and finance practices to protect our client's investment in this long-term, strategic real estate asset.

Our support for L&G spanned the entire eight-year life cycle of their investment:

• advising on the initial site acquisition, investment structuring and planning strategy;
• vavigating complex development agreements and construction procurement to mitigate risk;
• advising on development finance and refinancing on stabilisation;
• implementing sophisticated, tax-efficient funding and investment structures;
• providing ongoing legal advice on all operational and asset management matters for the BTR scheme; and
• advising on the strategic exit and disposal to KKR and Inhabeo.

In staying close to the detail – while also keeping the wider investment picture in view – we helped L&G make informed decisions at every stage, and delivered conditions for The Slate Yard to be well-positioned for future reinvestment.

The outcome

The 2025 sale of The Slate Yard is a significant endorsement of L&G’s original vision and will lead to the re-deployment of its capital into new housing developments across the UK. The Slate Yard will continue to serve as a hub for Manchester’s growing population, offering high-quality, professionally managed homes, and creating a lasting positive legacy in the region’s continued regeneration, with:

• 424 residential units across three buildings;
• 270,000 sq ft in total;
• sector-leading ESG performance, including fossil fuel-free energy and EPC B ratings;
• sale value of over £100m; and
• L&G’s first BTR project and a key part of its £3bn residential platform.

This project reflects the best of what we offer as a firm: deep sector knowledge, enduring client relationships, and an ability to deliver complex, cross-practice work with consistency and care. Our relationship with L&G spans not only the full life cycle of this asset but a broad range of work across its business – from pensions and funds to major real estate investments.