Linkcity, the property development company, has signed agreements with Grainger plc, the UK’s largest listed residential landlord, and the Local Pensions Partnership, to fund the creation of a build-to-rent development in Pontoon Dock, in London’s Royal Docks, procured through the Greater London Authority’s (GLA) London Development Panel.
The development represents a further milestone in the regeneration of the Royal Docks. It will form a new gateway to the Thames Barrier Park in the London Borough of Newham and will deliver 236 high-quality homes, with the majority specifically built for the private rented sector.
Vesta, a joint venture between Grainger plc and the Local Pensions Partnership, has entered into a forward funding agreement with Linkcity to acquire the 154 PRS units within the scheme. In addition, Grainger, through its for-profit registered provider, Grainger Trust, will acquire the remaining 82 units (35%) of the scheme, which will be affordable homes.
Grainger will have a 20% equity share of Vesta, while the Local Pensions Partnership will hold the remaining 80% stake. The Local Pensions Partnership is managing the investment on behalf of the London Pensions Fund Authority (LPFA).
Linkcity is developing the scheme, building on its previous experience of PRS developments including Hallsville Quarter in Canning Town, London Road in Barking, and The Forum in Birmingham. Bouygues UK is the main contractor, with construction starting this summer and completion due in early 2020.
While this investment represents the London Pensions Fund Authority’s first entry into PRS housing, it is part of a €1.34bn (£1.2bn) property portfolio managed by the Local Pensions Partnership which includes core property investments in PRS and commercial property across the UK.
James Murray, Deputy Mayor for Housing and Residential Development, said: “I am pleased to see this development is making significant progress, building much-needed new and affordable homes for rent on land owned by the Mayor’s office."
