Redrow and Realstar have agreed build to rent (BTR) deals at two separate London sites, delivering more than 500 homes for London renters.
The transactions have a combined GDV of £183.5 million and will see Redrow deliver 513 new rental homes in Southall and Colindale which will be professionally managed under the UNCLE brand.
The deals will provide a welcome boost to the number of build to rent homes available in London and bring Redrow London’s BTR deals in the Capital up to four, whilst Realstar have agreed twelve in the UK since it entered the sector.
As part of the transactions, UNCLE will acquire 347 new homes at the flagship development Colindale Gardens in Colindale, North London.
The £119.5 million PRS deal, the largest for Redrow to date, will fund the delivery of studio, one, two and three-bedroom professionally managed, build to rent homes which will be available next year. The announcement follows the £82.7m deal Redrow announced with M&G Real Estate last year which brought a further 186 new rental homes to Colindale Gardens as well as 211 homes sold to L&Q in 2016.
Located in the Burnt Oak and Colindale Opportunity area, Colindale Gardens is a £1.2 billion award winning new community, which is being created by Redrow on the site of the former Peel Centre Metropolitan Police training college. More than 2,900 new homes will be delivered over the next ten years.
An additional £64 million deal in Southall will see Redrow deliver 166 one, two- and three-bedroom apartments, all of which will benefit from a wellness space, gym, parking, co-working area and lounge, and will be professionally-managed under the UNCLE brand. The site sits adjacent to the existing scheme The West Works, where we are currently delivering 302 new homes as part of a mixed-use scheme.
The Southall build to rent apartments are anticipated to be available from summer 2020 and form part of an overarching vision to provide new homes and amenities in Southall. As a designated Opportunity Area in the London Plan, Southall is undergoing significant inward investment, which will see the provision of at least 6,000 new homes on previously industrial land and the creation of 3,000 new jobs.
Mark Parker, Managing Director of our London division, commented: “We are thrilled to announce this substantial commitment to delivering high quality rental homes in London. These build to rent deals signal yet another exciting opportunity for Redrow and our customers as we strive to create sustainable communities with a variety of homes for all needs. Both Colindale and Southall are quickly defining themselves as new property hotspots as they undergo significant inward investment. We are expecting strong interest for these new rental homes as our sales teams in these locations are seeing a growing number of enquiries from young professionals here.”
Ryan Prince, CEO and Founder of UNCLE, said: “UNCLE’s strategy is to grow and become a dominant player in the London rental market with assets located throughout the city - North, South, East & West. Given the current conversation around housing in the Capital, we’re confident that there will be continued interest and opportunities around London, as people continue to explore new neighbourhoods across this vibrant city.
“At UNCLE, we believe that lots of small things can add up to a big difference – the resident manager who knows your name, never having to worry about your packages getting lost, not worrying about that leaky tap. We’re confident that if we take care of you, together we’ll build the neighbourhood we all want: a safe and happy place where neighbours say hello in the lift, offer a hand with the groceries and are happy to come home.”
“Our aim is to become consumers’ first choice for a place to live if they’re a renter. In order to do this, the company aims to have multiple locations and varying price points in every city in which it operates. Our £120m commitment at Colindale is a meaningful step in achieving this goal.”