European real estate investment platform Henderson Park and rental housing specialist Greystar Real Estate Partners have acquired a site located at the former Royal Mail depot in Nine Elms, London for £101 mln (€113 mln).
The joint venture intends to develop the plot into an 894-home build to rent (BTR) residential scheme, as they continue to build their private rented sector (PRS) portfolio.
The development is being funded with equity from Henderson Park and Greystar, and a £385 mln, six-year whole-loan facility provided by investment firm Cain International.
'This significant investment to create almost 900 new homes demonstrates our ongoing commitment to the private rented sector in London by increasing our portfolio to almost 2,000 homes,' said Nick Weber, founding partner of Henderson Park.
'We continue to look for further opportunities to invest in this undersupplied sector and bring forward new developments, helping satisfy the city’s growing demand for high-quality and professionally managed rental housing,' Weber added. 'This deal also extends our commitment to the Battersea Nine Elms area, a hugely exciting part of London which benefits from a prime Zone 1 location, 2 major infrastructure investment and the fact that it is fast becoming established as a vibrant new community for Londoners.'
Planning permission was granted in March 2019 for the development. The joint venture has entered into a design and build contract with Telford Homes Plc, with construction slated to commence this month, then delivering the project in multiple phases. First homes are expected to be ready in 2022 with full completion in 2024.
The development will deliver 641,000 ft2 of residential space across two buildings, providing a mix of studios, one, two and three-bedroom apartments.
This is the fourth London investment that Henderson Park and Greystar have made in joint venture and extends their PRS portfolio in London to almost 2,000 apartments. These include build to rent schemes under construction in Walthamstow and Croydon and a standing portfolio of apartments located in Aldgate, Fulham and Nine Elms.
Mark Allnutt, senior managing director UK of Greystar, said: 'We are excited to be moving ahead at speed with construction at Nine Elms after receiving final approval for the site.'