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Housing association agrees £62m forward funding deal with developer
L&Q has entered into a £62m forward funding deal with a developer to take ownership of 172 homes it is building in a south London borough.
The 90,000-home housing association has agreed the deal with residential developer Hub and impact investor Bridges Fund Management.
It will see the association fund and take ownership of two blocks in Croydon which are part of Hub’s wider development project in the area.
The association will provide a mix of shared ownership and London Living Rent homes in the 84 and 88-home block towers.
This will bring the level of affordable housing across Hub’s entire Taberner House development, which comprises 513 homes across four blocks.
Hub is a private house builder which has a number of large development projects across the capital.
Steve Sanham, managing director at the firm, said: “The deal with L&Q follows a huge amount of collaborative working with multiple stakeholders and, importantly, Croydon Council. It’s this collaborative working which has seen this previously stalled site unlocked for the exemplary residential scheme the site deserves – and we are particularly pleased that this deal has helped us increase the level of affordable housing across the development to 50%.”
Vicky Savage, regional managing director at L&Q, said: “Everything we do begins with social purpose. L&Q’s vision is that everyone has a quality home they can afford, and we combine our social purpose with commercial drive to create homes and neighbourhoods everyone can be proud of. We are absolutely committed to building more affordable housing.”
Completion of the Taberner House development is expected in 2021.
The L&Q deal follows the announcement of a £100m forward funding deal with Legal & General back in May 2018.
That deal will see Legal & General Investment Management take ownership of a 35-storey building on the Taberner House site, which will become a 251-unit build-to-rent tower.
Hub and Bridges are partnering on a number of projects across Greater London which could deliver over 1,500 homes with a combined value of over £500m.
Savills advised Hub on the forward funding deal with L&Q.
