German real estate firms ECE and Art-Invest Real Estate have teamed up to develop a £190m (€212m) residential project in London.

Retail property specialist ECE and Art-Invest’s UK property arm have agreed to develop 88 luxury apartments, 35,000sqft of commercial space and 15 affordable housing units on a one-acre site on Cleveland Street in London W1.

The project, the duo’s first investment in the UK, will be co-developed with local developer Dukelease Properties, and completion of the project is scheduled for completion in 2021.

ECE, the €33bn retail property manager, said it is exploring new opportunities, particularly in the residential sector.  The family-owned company also develops real estate projects such as corporate headquarters, office and industrial buildings, logistics centres, hotels, residential properties, and city districts.

ECE’s CIO, Henrie W Koetter, said: “We are very positive about the long-term prospects for UK real estate.

“The project in collaboration with Art-Invest Real Estate, who are one of the most respected investor developers in Europe, was a unique opportunity to enter this sector for the first time.”

The €6bn Art-Invest Real Estate recently announced the opening of their new London office to strengthen their local presence and to pursue a targeted early-stage investment strategy.

Art-Invest Real Estate UK’s managing partner, Ali Abbas, said: “ECE is a natural joint venture partner for us on our first development in the UK.

“Its approach to real estate and its commitment to excellence is completely aligned with our strategic values.”