SME developer Medina Capital Investments has completed a deal to buy the empty Capital Gate office building in Hainault, north-east London, for a £50m GDV residential scheme.
The vacant 50,000 sq ft two-storey office building, which sits on a 1.2ha plot, was sold by an entity in the British Virgin Islands for an undisclosed sum.
Medina Capital Investments intends to submit a planning application for a sustainable residential scheme of circa 50 family houses and 40 flats by Q3 this year.
The developer said its purchase reflects a “renewed” focus on suburban housing-led regeneration for the business, with further acquisitions in the pipeline.
The site has been allocated for residential development in the London Borough of Redbridge’s local plan, with various pre-application schemes previously proposed of up to 130 homes.
Nidal Al Khail, managing director of Medina Capital Investments, said: “Capital Gate represents a prime opportunity to transform a tired office block with inefficient land use into a new family led residential community that meets the housing needs of the local borough. While previous applications have focused on higher-rise apartment blocks, we firmly believe that a low-rise, house-led approach will bring more value to the local area.”
“We are actively looking for similar commercial asset acquisitions where we can utilise our in-house planning expertise to unlock value and deliver much needed new accommodation, particularly houses, in turn breathing new life into suburban areas.”
Simon Hohenberg of Realea and Ed de Jonge of Savills advised the buyer.
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