M&G Real Estate has agreed to acquire 186 new homes at the Redrow Homes’s Colindale Gardens development in Colindale, North London. The €93.6m (£82.7m) deal marks the company's third build-to-rent transaction in 2018.
Colindale Gardens is a €1.36bn (£1.2bn) award-winning new community, which is being created by Redrow on the site of the former Peel Centre Metropolitan Police training college, which will see more than 2,900 new homes built over the next ten years. The deal will fund the delivery of one, two and three-bedroom professionally managed, build-to-rent homes.
With the completion of the build-to-rent units anticipated by 2021, it will help to fulfil the strong demand for rental homes in the Burnt Oak and Colindale Opportunity Area, which aims to build 12,500 homes over the next ten to 15 years. Residents within the building will benefit from a lounge and communal area, landscaped gardens and an onsite services manager.
Colindale Gardens is set across 48 acres and priority has been given to delivering extensive green open space – a rarity for London. Nine acres of the development will be dedicated parkland and a number of sports pitches and play parks are also planned. Once complete, it will provide residents and the wider community with a range of shops, restaurants and cafes. The scheme also benefits from excellent transport links, with Colindale underground station a five-minute walk away.
Alex Greaves, Head of Residential Investment at M&G Real Estate, comments: “This new deal with another top UK house-builder, increases our ongoing development pipeline, offering our investors the opportunity to continue capitalising on the UK’s rapidly growing private rental market. We look forward to continued deals of this stature in the sector, providing investors with the chance to increase their exposure to the residential market. This development is a clear statement that renting can be the tenure of choice for an upwardly mobile workforce, which requires the flexibility of renting with high-quality service and support. Colindale has emerged as a property hotspot and is an area undergoing a major transformation.”
Mark Parker, Managing Director at Redrow Homes East London, adds: “This deal is another exciting step forward for Colindale Gardens and Redrow as we look to create a diverse and sustainable community that offers a range of housing for a diverse mix of Londoners. The wider area is fast becoming a hotspot for families and young professionals and our development will offer all the attributes which customers prioritise, including excellent connectivity, green open spaces and an abundance of amenities on their doorstep.”