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, London. The acquisition further extends the Henderson Park and Greystar joint venture’s high-quality build to rent portfolio in London to c.1,000 apartments. The transaction comprises the acquisition of the freehold interest in the land and the construction of 257 build-to-rent homes, in the capital’s E17 postcode for a net consideration of €120.5m (£105.5m). The Equipment Works acquisition is on a forward-funded basis and will comprise an initial land payment followed by regular payments throughout the construction period and a final profit payment.
The 3.16-acre Equipment Works site in the London Borough of Waltham Forest was purchased by Telford Homes in December 2017 and has full planning consent for 337 new homes including 80 affordable homes and 18,830ft² of flexible commercial space. The development is serviced by excellent transport links being situated close to Blackhorse Road station on the Victoria line and London Overground. The scheme is currently under construction and is anticipated to be completed in late 2021.
Nick Weber, Founding Partner of Henderson Park, commented: “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. We are also pleased to be working to deliver this scheme with Telford Homes and Greystar, with whom we are also working with on other projects across London, which will offer an attractive solution to renters in the capital.”
Mark Allnutt, Senior Managing Director UK of Greystar, said: “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. We are thrilled to continue working with Telford Homes and Henderson Park through this project, which will create significant economic and social benefits for the local community.”
Jon Di-Stefano, Chief Executive of Telford Homes, commented: “We are delighted to have secured another forward-funded, build-to-rent sale and especially to have further cemented our strong relationship with Greystar. 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 whilst providing certainty over future revenues and cash flows and delivering excellent returns on capital.”
