Development Securities in joint venture with Berkshire Investment Capital, announced that Canada Life has committed £38.1 million (approx. €46.42 million) to forward-fund the first phase of development at Cross Quarter, Abbey Wood, at a yield of 4.41 %. The funding will finance the development of an 81,000 ft² (approx. 7,525 m²) foodstore, pre-let to Sainsbury’s, which will anchor this £85 million (approx. €103.5 million) mixed-use regeneration scheme.
In addition to the foodstore, Cross Quarter has planning consent for 220 residential apartments and 5,000 ft² (approx. 464 m²) of retail and commercial space. The vacant, industrial site, covering 10-acres, was acquired in April 2011 and lies adjacent to Abbey Wood station which will become the South East terminus for Crossrail in 2018.
Demolition works on the first phase have commenced ahead of construction starting later this year with a targeted completion in Q2 2015.
Matthew Weiner, Development Securities said: “Today’s announcement adds to the continued strong progress that we are making across our development and trading portfolio to create value through regeneration. Abbey Wood is set to significantly benefit from the arrival of Crossrail and our investment here supports our activities in suburban London locations which are well-connected and positioned for growth. This is an important milestone for Cross Quarter and we look forward to bringing the development to completion.”
Source: Development Securities