Henderson Park and Greystar Real Estate Partners have expanded their London build-to-rent portfolio with the acquisition of a £101m (€113.3m) site for an 894-home scheme.

In a joint announcement, the companies said they have bought the former Royal Mail depot in Nine Elms for the development which is fully funded with equity from Henderson Park and Greystar, and a £385m loan facility provided by investment firm Cain International.

The development is located in a prime location in the Battersea Nine Elms regeneration area and will deliver 641,000sqft of residential space across two distinct buildings. The scheme will include retail and community space.

The duo said they have entered into a full design and build contract with Telford Homes who will commence construction this month and deliver the project in multiple phases.

First homes are expected to be delivered in 2022 with full completion in 2024.

Nick Weber, founding partner of Henderson Park, said: “This significant investment to create almost 900 new homes demonstrates our ongoing commitment to the private rented sector (PRS) in London by increasing our portfolio to almost 2,000 homes.

“We continue to look for further opportunities to invest in this undersupplied sector and bring forward new developments, helping satisfy the city’s growing demand for high-quality and professionally managed rental housing.”

Mark Allnutt, senior managing director UK of Greystar, said: “We are excited to be moving ahead at speed with construction at Nine Elms after receiving final approval for the site.

“This marks a significant milestone for our growth in the UK and further consolidates Greystar’s position as one of the leading build-to-rent developers in London.”

The first Henderson Park and Greystar partnership was established two years ago.

The latest deal is the fourth London investment that the pair have made together and extends their PRS portfolio in London to almost 2,000 apartments.