Henderson Park and Greystar Real Estate Partners have acquired a site located at the former Royal Mail depot in Nine Elms, London, for €113.4m (£101m), which they intend to develop into an 894-home Build to Rent (BTR) residential scheme. The development is fully funded with equity from Henderson Park and Greystar, and a €432.2m (£385m), a six-year whole-loan facility provided by Cain International.
The joint venture has entered into a full design and build a contract with Telford Homes who will commence construction this month and deliver the project in multiple phases. First homes are expected to be delivered in 2022 with full completion in 2024.
The development is located in a prime location in the Battersea Nine Elms regeneration area and will deliver 641,000ft² of residential space across two distinct buildings, providing a mix of studios, one, two and three-bedroom apartments. The high-specification managed scheme will include 25,000ft² of best-in-class tenant amenities including two rooftop swimming pools and will also comprise 25,000ft² of retail and community space, set amongst landscaped gardens.
The buildings will be a short walk from both the new Nine Elms and Battersea Power Station London Underground Zone 1 stations which form part of the Northern Line extension and sit adjacent to the planned Linear Park, which runs across the entire length of the regeneration scheme, with both the new US Embassy and the Battersea Power Station redevelopment also nearby.
Nick Weber, Founding Partner of Henderson Park, commented: “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. 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. 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, major infrastructure investment and the fact that it is fast becoming established as a vibrant new community for Londoners. We look forward to continuing to grow our strong relationship with Greystar both in Nine Elms and across London.”
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. This marks a significant milestone for our growth in the UK and further consolidates Greystar’s position as one of the leading Build to Rent developers in London. The London market is significantly under-supplied when it comes to these types of developments, and existing rental homes are often outdated or poorly managed. This development at Nine Elms will ensure we continue to be part of London’s housing solution, creating thousands of much-needed, high-quality homes for an ever-increasing number of renters. We look forward to working with our partners at Henderson Park to expand the BTR offering in London and contributing to the development of the Nine Elms area for future generations.”
Jon Di-Stefano, Chief Executive Officer of Telford Homes, said: “We are delighted to be building this exciting scheme for Henderson Park and Greystar. We continue to make progress against our objective to increase the Group’s output of build to rent homes in London, and this contract with Henderson Park and Greystar, with whom we have a strong relationship, highlights our position as a trusted partner at the forefront of this fast-growing sector.”
John Cole, Managing Principal of Cain International, added: “We are proud to provide this substantial loan, which demonstrates our commitment to partnering in order to address market demand and our debt platform’s flexibility and firepower to provide outsized loans.”