City & Docklands and Housing Growth Partnership partner to develop North Kensington Gate.
City & Docklands Property Group and Housing Growth Partnership (HGP) have formed an equity partnership to develop North Kensington Gate.
The development is located in the OPDC regeneration area, which is a 5-minute walk from the new Old Oak Common transport super-hub that links the Elizabeth Line and HS2, and is set to become the largest and best-connected station in the UK.
The scheme is a part of the OPDC's goal to provide 25,500 homes within the west London regeneration area in the next 20 years. HGP has invested £14m equity in the deal, while lender Cheyne Capital Real Estate has committed £73m of development debt.
North Kensington Gate will offer 208 one, two, and three-bedroom homes, along with amenities such as an onsite resident and business lounge, sky terrace, and landscaped gardens. The scheme includes 58 affordable homes, ranging from 7 to 24 storeys.
The development will also provide access to the Mary Seacole bar and casual dining, artist studios, and outside seating areas leading to the Mary Seacole Gardens & Grand Union Canal at the adjacent City & Docklands development, Mitre Yard.
This marks HGP's first investment with City & Docklands, and is the largest investment made since the expansion of the HGP III Fund this year. HGP's parent company, Lloyds Banking Group, is funding the deal to accelerate equity investment into larger urban schemes and a wider range of residential sectors.
Rachel Miller, Investment Director at HGP commented: “We are delighted to be supporting our new and highly experienced partner City & Docklands to develop these homes which will catalyse this key brownfield regeneration site in London. The transaction represents HGP’s ambition in scaling up our investments to tackle housing challenges, and our remit to support the growth of our development partners.”
Anna Bulach at Cheyne Capital Real Estate said: “We are delighted to be the lender of choice yet again to City & Docklands and their new joint venture partner Housing Growth Partnership, and to continue supporting their efforts in driving forward the delivery of high quality homes across London. The development occupies an important position at the Eastern gateway to one of the largest regeneration projects in the UK. We look forward to seeing North Kensington Gate lead the way for similar developments in the area in the coming years.”
Gary Sacks, Chairman and CEO at City & Docklands added: “We are very happy to be partnering with HGP on such a key regeneration site, within one of Europe’s most high-profile and exciting regeneration projects. We are also pleased to be developing the site with debt funding from our longstanding development debt-providers, Cheyne Capital Real Estate. This development follows the delivery of 701 homes at One West Point in North Acton, and will contribute to the overall delivery of more than 1150 homes in west London by City & Docklands, in the next two years.”