Telford Homes, Notting Hill Genesis, and London BTR Investments Limited, a joint venture between EQT Exeter and Sigma Capital Group, have announced they have exchanged on a forward sale of the Build-to-Rent (BtR) element of the Gallions Quarter Phase 2B site at Royal Albert Wharf in the Royal Docks for £66m.

The development features two buildings offering a total of 132 homes for market rent, managed under Sigma's Simple Life London brand, with an additional 135 homes available for affordable rent and shared ownership, owned and managed by Notting Hill Genesis.

The units are expected to be ready for occupancy in Q1 2024, with amenities including a concierge, landscaped courtyards, and recreational facilities for the local community. The development is located in the Royal Docks, a designated key area for growth with enormous potential, and will achieve an EPC B rating, ensuring energy and cost-efficiency.

In addition to the residential units, the Gallions Quarter Phase 2B development will also include commercial space spanning 9,100 sqm, with retail and employment opportunities that support the residential-led development. The project is supported by the Greater London Authority (GLA) as the landowner and through funding for affordable housing units. Notting Hill Genesis will have built a total of 1,856 homes and 784 (42%) of these homes will be affordable housing.

The location of the development, situated at the intersection of the Thames Estuary, the Royal Docks and Beckton Riverside Opportunity Area, and the UK's Innovation Corridor, offers convenient access to London's financial and business districts, as well as to Crossrail at Custom House. The development is located right next to Gallions Reach station on the Docklands Light Railway, providing direct transportation links.

The project is part of the multi-billion pound regeneration of the Royal Docks, which aims to transform the area into a new creative hub with thousands of new homes. Once completed, Royal Albert Wharf will have been transformed into a vibrant mixed-use development, providing employment opportunities and retail uses that complement and support the residential component.

The deal marks Telford Homes' twelfth BtR transaction, and the company aims to lead the living sector in the UK with its ambitious go-forward strategy. Telford Homes has delivered over 1,000 BtR homes across London, with a further 4,650 homes in the pipeline. Similarly, the development marks Simple Life London's eighth site within its London portfolio, bringing its total completed and underway homes to over 1,400, and over 8,000 homes completed and underway across the entire Simple Life brand UK-wide. The construction of the development has supported 450 jobs over its lifecycle.

Charlie Weatherill, Capital Markets Director at Telford Homes, commented: “We are delighted to have exchanged on this deal with Sigma and EQT Exeter. The closing of this transaction during a period of such macro-economic uncertainty underpins our strong conviction in the performance and resilience of the UK’s BtR sector - which continues to witness exceptional occupier demand - whilst new supply is increasingly constrained by continued economic uncertainty and ever more regulatory burdens.”

John Hughes, group director of development and deputy chief executive of Notting Hill Genesis, said: “Royal Albert Wharf is a triumph of partnership working and we are delighted to welcome Sigma and EQT Exeter to the future success of Royal Albert Wharf.

“We have a long and established commitment to delivering high quality homes to support local people in the communities where we work. In addition to the high levels of affordable housing at Gallions 2B we are very pleased to have secured further investment to support our long-term goal of regenerating this amazing and historic area.

“We are committed to providing high-quality homes and spaces across all tenures and few developments highlight that as well as Royal Albert Wharf.”

Jack Barnet, Investment & Acquisitions Director at Sigma Capital Group, added: “We’re delighted to be working with Telford Homes and Notting Hill Genesis on what is set to be an excellent development. Simple Life London prides itself on offering high standards of build to rent, both through its product and customer service.”

Peter Shacalis, Managing Director at EQT Exeter, said: “Gallions Quarter provides a compelling living proposition for renters in London: an affordable, waterside location with great connectivity within a well-designed, modern masterplan. We continue to pursue our strategy of targeting BtR assets with a strong value proposition for tenants.”