L&G forward funds €114.2m Croydon BtR scheme (GB)

Legal & General forward funds €114.2m Croydon BtR scheme (GB)

HUB and Bridges Fund Management have agreed a €114.2m (£100m) deal with Legal & General to develop a 251-unit build to rent tower at the heart of the Taberner House development in Croydon, south London. The forward funding deal will see Legal & General take ownership of the 35-storey building. Designed by Stirling Prize-winning architect AHMM, the building comprises a mix of one-, two- and three-bedroom apartments, with rooftop amenity space, communal facilities on the ground and first floors and a ground floor commercial unit.

 

The tower is the tallest of the four blocks that comprise the Taberner House development, which also includes 21-, 19- and 13-storey buildings. The development will provide 513 homes, with a mix of affordable, for sale and rental units, as well as a new public realm, a children’s play space and a new café. At least 40% of the units will be designated as affordable.

 

As part of the development, The Queen’s Gardens, which are adjacent to the site, will be enlarged and revitalised, with new landscaping and amenities.

 

The deal with Legal & General comes as construction work commenced on the scheme after Henry Construction was appointed as the main contractor.

 

Dan Batterton, BTR Fund Manager at Legal & General said: "Our funding deal will act as a catalyst for further housing development in Croydon and will help support the wider regeneration of the area. Bringing together the development expertise of HUB, the progressive long-term vision of Croydon Council and our private capital we are able to unlock the development of much-needed housing supply, delivering real UK growth and helping to transform Croydon over the long term."

 

Steve Sanham, HUB Managing Director, said: "Taberner House is a hugely important development for Croydon and after an extensive process of engagement with the community and other stakeholders we are very excited that work on the scheme is now underway. The deal with Legal & General is a massive vote of confidence not only in the quality of the scheme that we are bringing forward but in Croydon itself – a vibrant, innovative and dynamic town with a proud history and a strong identity."

 

Simon Ringer, Head of Property Funds at Bridges, said: "There’s a pressing need for more affordable and lower-cost housing in London. We believe our Taberner House development in Croydon, which is informed by the needs of the local community and draws on the latest sustainable design and construction techniques, is going to be a great example of what can be achieved. Moreover, this deal highlights that there’s a strong appetite among institutional investors for high-quality assets like this that are creating long-term value for their local area."

 

Completion of the Taberner House development is expected in 2021. Savills advised HUB on the forward funding deal with Legal & General.

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