£80m scheme launched to build another high rise block of flats at Central Milton Keynes

Pension giants PIC have revealed their plans to demolish an office block and build 306 apartments in the city centre.

The Pension Insurance Corporation plc will fund the £80m redevelopment of Bowback House, the former tax office and DWP building opposite Milton Keynes Magistrates Court.

Planning consent was granted last year for the four storey building to be demolished and a high rise 14-storey block of flats will be built on the site.

All the flats will be for rent, mainly on the private market. But 43 of them will be classed as affordable housing, say PIC.

Over the past 18 months, PIC says it has invested around £500 million in similar productive finance projects across the country, working closely with local councils to ensure that the projects bring "significant benefit" to local communities.

The benefits include employment and spend in the local economy in the short term, and "very high standards of rental accommodation" for tenants in the long term.

The CMK development will employ around.750 people on site during construction. It is due to be completed in 2024.

Tracy Blackwell, CEO of PIC, said: “We are really pleased to announce our latest Build-to-Rent project, which will once again go above and beyond existing building requirements in terms of energy efficiency and resident safety."

Developers HG Living (HGL), have been chosen to build the scheme, which will include a residents’ lounge, gym, fitness studio, sky lounge and multi-use games room.

They will use Air Source Heat Pumps for hot water and green electric for heating, including solar panels.

.Rob Greaves, Development Director of HG Living, said: “We are delighted to be working with Pension Insurance Corporation on this project, which will be delivered in the spirit of true partnership with PIC. HG Living and HG Construction have an enviable track record of delivering projects with certainty for our institutional funding partners and creating high quality, sustainable living spaces that will make a positive long-term contribution to local communities.

"The Build-to-Rent sector has an important role in addressing the current housing shortage and we are pleased to play our part in bringing urgently required homes to the market at scale and at speed.”

The development is one of numerous projects to bring thousands of new apartments to CMK over recent years. These include the £180 million redevelopment of CMK's Saxon Court, which will include a 33-strey high block of apartments.