Joint venture partners Native Land and Grosvenor have confirmed the acquisition of a prime residential site at Alpha Place in Chelsea for £50 million (59 mln.) and also announce a £90 million facility from Barclays Real Estate to finance the development of 100,000 ft² (9,260 m²) of residential accommodation.
Construction completion is expected in spring 2014.
The 0.8 acre Alpha Place site was acquired from Jon Gershinson and Simon Davidson of Allsop, acting as joint fixed charge receivers for Alpha Place Developments (Chelsea) Ltd.
Alpha Place fronts onto Chelsea Manor Street, London SW3, and benefits from an existing planning permission for 100,000 ft² of residential accommodation. Construction is due to commence in summer 2012 with completion expected in spring 2014.
Upon completion, the development will comprise 25 prime lateral apartments for open market sale, 13 on-site affordable flats, a resident's only leisure facility and 47 underground car parking spaces.
Commenting on the purchase, Alasdair Nicholls, Chief Executive of Native Land said: "Chelsea is one of the most sought-after residential locations in the world and the Alpha Place project will be very much in keeping with our strategy to meet the sustained demand for prime London property from international investors. Our ability to secure a significant bank facility from Barclays in a constrained lending market reflects not only our track record in delivering successful projects but also the enduring appeal of London as a prime development location."
Craig McWilliam, Executive Director at Grosvenor added: "Grosvenor's strategy emphasizes our expertise in delivering high-end residential developments in central London locations. Opportunities to develop exceptional places for people to live in such a prime area as this are very rare, so we are delighted to be partnering again with Native Land on Alpha place."
Graham Chilver, Relationship Director, Barclays Real Estate said: "We are delighted to be involved on this very exciting scheme with both Native Land and Grosvenor who have a proven track record in the prime London market. Barclays Real Estate has been a long term supporter of the residential sector and the significant commitment shown to this project reaffirms our position in this market."
The joint venture has already made improvements to the scheme with the agreement of the Royal Borough of Kensington and Chelsea, most notably the relocation of the main entrance of the scheme to Chelsea Manor Street and the introduction of floor to ceiling windows. In addition, Native Land and Grosvenor have made extensive improvements to the internal layouts of the apartments.
Alpha Place is in a prime central London location, south of the King's Road in Chelsea, near the internationally recognized shopping destinations of the King's road and Knightsbridge.
Allsop acted for the vendor. Savills acted for Native Land and Grosvenor.
Source: FTI Consulting