Telford Homes has exchanged contracts for the sale of Equipment Works development site to a joint venture between Henderson Park and Greystar.
The transaction comprises the sale of the freehold interest in the land and the construction of 257 build to rent homes for a net consideration of £105.5 million.
The sale is on a forward-funded basis and will comprise an initial land payment followed by regular payments throughout the construction period and a final profit payment.
The 3.16 acre site in the London Borough of Waltham Forest was purchased by the Group in December 2017 and has full planning consent for 337 new homes including 80 affordable homes and 18,830 square feet of flexible commercial space. The location is serviced by excellent transport links being situated close to Blackhorse Road station on the Victoria line and London Overground. The development is under construction and is anticipated to be completed in late 2021.
Jon Di-Stefano, Chief Executive Officer of Telford Homes, said: “We are delighted to have secured another forward-funded, build to rent sale and especially to have further cemented our strong relationship with Greystar. This transaction demonstrates our increasing commitment to London’s growing build to rent market and underpins our strategy to continue to scale our build to rent pipeline whilst providing certainty over future revenues and cash flows and delivering excellent returns on capital.”
Nick Weber, Founding Partner of Henderson Park, added: “The demand for housing in London continues to outstrip supply and with home ownership at unaffordable levels for many people, the need for new rental homes is growing rapidly. This shortage is further compounded by the current lack of professionally managed build-to-rent product in the UK, with existing rental stock largely dated and in need of modernisation. This exciting development is in an area experiencing significant regeneration and will bring first-class homes to the community of Walthamstow. We are also pleased to be working to deliver this scheme with Telford Homes and Greystar, with whom we are also working with on other projects across London, which will offer an attractive solution to renters in the capital.”
Mark Allnutt, Senior Managing Director UK of Greystar, commented: “This transaction not only represents an exciting expansion of our London footprint, but also demonstrates our long-term commitment to providing high-quality properties that match residents’ demands for value and service. We are thrilled to continue working with Telford Homes and Henderson Park through this project, which will create significant economic and social benefits for the local community.”
Telford Homes was advised by the Residential Capital Markets team at CBRE.
Telford Homes is about to start a formal marketing process to find a build to rent investor for all of the open market homes having concluded a period of initial design work.
Jon Di-Stefano, Chief Executive of Telford Homes, commented: “Build to rent is the most exciting part of our business in the near term and I believe our increased focus on this sector will drive the next phase of our growth and bring even greater success.”
Source: Telford Homes Plc update on trading ahead of its final results for the year ended 31 March 2018.