Greystar Real Estate Partners and the Abu Dhabi Investment Authority’s (ADIA) £2.2bn (€2.6bn) UK build-to-rent (BTR) investment partnership is buying a south London housing project from Grosvenor.

Greystar said the partnership is acquiring the scheme at the former Peek Freans biscuit factory site in Bermondsey from Grosvenor’s UK property arm. Financial details were undisclosed

The scheme will feature 1,548 homes, a new secondary school and retail spaces.

Heather Topel, director of development at Grosvenor, said: “Our designs create a world-class neighbourhood infused with the history of Bermondsey in a way that both involved and connected its communities and interest in the opportunity to deliver this scheme was exceptionally competitive.

“Greystar has a strong track record, and environmental and community values aligned to our own and we are confident they will deliver it to an incredibly high standard.”

Topel said the proceeds from the sale will be reinvested into “growth opportunities in our London portfolio and regional investment business”.

Mark Allnutt, senior managing director in Europe, Greystar, said: “The acquisition of Grosvenor’s Bermondsey development site represents another milestone reached in our ongoing strategy to develop thoughtfully designed and professionally-managed rental communities, particularly in light of the current shortage of high-quality rental property in the capital.

“We look forward to building upon the work Grosvenor has started to deliver new homes and amenities for the people of Bermondsey.”

In December last year, sovereign wealth fund ADIA and Greystar teamed up to develop BTR housing in London and surrounding commuter towns. The venture’s first asset was a development site on Lombard Road in Battersea, London.

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