Henderson Park and Greystar Real Estate Partners have exchanged contracts with Telford Homes to acquire all 257 market rental homes within the Equipment Works development site in Walthamstow, E17, for £105.5m.
The forward funding transaction includes the acquisition of the freehold interest in the land and the construction of 257 build-to-rent homes and will be paid for by an initial land payment followed by regular payments throughout the construction period and a final profit payment.
It is the second BTR investment Henderson Park and Greystar have made in joint venture following their earlier acquisition of a circa 550-unit residential development in Croydon. The partners have also invested in a portfolio of 172 flats spread across three central London schemes, which was acquired from Barratt Homes in 2017.
The London BTR portfolio held by the Henderson Park and Greystar joint venture now stands at around 1,000 flats.
Telford Homes acquired the 3.2-acre Equipment Works site in December 2017 and has full planning consent for 337 new homes, including 80 affordable homes and 18,830 sq ft of flexible commercial space.
The development is under construction and is anticipated to be completed in late 2021.
Nick Weber, founding partner of Henderson Park, said: “The demand for housing in London continues to outstrip supply and with home ownership at unaffordable levels for many people, the need for new rental homes is growing rapidly. This shortage is further compounded by the current lack of professionally managed build-to-rent product in the UK, with existing rental stock largely dated and in need of modernisation. This exciting development is in an area experiencing significant regeneration and will bring first class homes to the community of Walthamstow.”
Mark Allnutt, senior managing director UK at Greystar, added: “This transaction not only represents an exciting expansion of our London footprint, but also demonstrates our long-term commitment to providing high-quality properties that match residents’ demands for value and service.”
Jon Di-Stefano, chief executive of Telford Homes, said: “This transaction demonstrates our increasing commitment to London’s growing build-to-rent market and underpins our strategy to continue to scale our build-to-rent pipeline while providing certainty over future revenues and cash flows and delivering excellent returns on capital.”
CBRE advised Telford Homes.
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