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London housing association strikes £50m deal to fund 131 build-to-rent homes
Large London housing association Peabody and house builder Redrow have agreed a £50m deal to deliver 131 build-to-rent homes.
The development at Pontoon Reach in the Royal Docks, east London, will include a mix of studio, one, two and three-bedroom apartments.
The £50m deal was secured with funds managed by Pictet Alternative Advisors in a joint venture with Pinnacle Investments and managed by JLL.
The homes will make up part of the Pontoon Reach development, which will offer 295 new homes, including 42 affordable rent and 53 shared ownership homes to be managed by Peabody.
The build-to-rent apartments at Pontoon Reach are anticipated to be available from summer 2022 and form part of the wider £314m regeneration of the Royal Docks.
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The area is London’s only enterprise zone and one of only 48 zones in the country that provide tax breaks and other business incentives as part of the government’s industrial strategy.
Paul Muldowney, managing director at Redrow, said the former industrial heartland had received substantial investment since it was established as an enterprise zone in 2013, with overall investment in the area set to reach more than £8bn by 2037.
He added: “This build-to-rent deal further cements our commitment to deliver high-quality homes which meet a variety of needs. The move is an exciting step forward for Pontoon Reach and the wider Royal Docks area and underpins our ambitions to create diverse and sustainable communities.”
Edward Jackson, senior investment professional at Pictet Alternative Advisors, said: “We, along with Pinnacle, are very excited to add these 131 apartments at Pontoon Reach to our growing residential platform, taking our London portfolio to over 200 units. The London rental market continues to show strong growth characteristics, owing to an acute shortage of high quality, energy efficient homes.”
James McMylor, regional development director at Peabody, said: “We’re committed to providing quality new affordable homes to foster sustainable and mixed communities now and into the future. The scheme will be a great addition to this exciting regeneration area, and we’re here for the long term, with affordable homes to rent and buy and great open spaces for all to enjoy.”
The chief executive of Peabody launched an investigation last week into “what went wrong” after the body of a 61-year-old resident was left undiscovered for two years.
Ian McDermott said he was devastated to hear what had happened to resident Sheila Seleoane, who was found in her housing association flat at Lords Court in Peckham, south London, after the police forced their way into the property.
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