City & Docklands and HGP have set up an equity partnership for the North Kensington Gate regeneration scheme in West London.
HGP have pledged £14 mln (€15.7 mln) in equity, with Cheyne Capital Real Estate providing a £73 mln (€82 mln) development facility.
The project foresees the construction of 208 homes, ranging from 7 to 24 storeys, on the edge of the Old Oak Common regeneration area, including 58 affordable dwellings.
Residents amenities will include an onsite resident and business lounge, sky terrace, and landscaped gardens, as well as access to additional amenities across the road at Mitre Yard, part of the City & Docklands portfolio.
Completion of North Kensington Gate is scheduled for Q4 2024.
Rachel Miller, investment director at HGP commented: ‘We are delighted to be supporting our new and highly experienced partner City & Docklands to develop these homes which will catalyse this key brownfield regeneration site in London. The transaction represents HGP’s ambition in scaling up our investments to tackle housing challenges, and our remit to support the growth of our development partners.’
Anna Bulach at Cheyne Capital Real Estate added: ‘We are delighted to be the lender of choice yet again to City & Docklands and their new joint venture partner Housing Growth Partnership, and to continue supporting their efforts in driving forward the delivery of high quality homes across London. The development occupies an important position at the Eastern gateway to one of the largest regeneration projects in the UK. We look forward to seeing North Kensington Gate lead the way for similar developments in the area in the coming years.’
Gary Sacks, chairman and CEO at City & Docklands said: ‘We are very happy to be partnering with HGP on such a key regeneration site, within one of Europe’s most high-profile and exciting regeneration projects. We are also pleased to be developing the site with debt funding from our longstanding development debt-providers, Cheyne Capital Real Estate. This development follows the delivery of 701 homes at One West Point in North Acton, and will contribute to the overall delivery of more than 1150 homes in west London by City & Docklands, in the next two years.’
North Kensington Gate will be a five minute walk from the Elizabeth Line and HS2 super hub, slated to the biggest and best-connected station in the UK.
HGP’s first investment with City & Docklands is also the largest investment made since the expansion of the HGP III Fund this year and is funded by HGP’s parent Lloyds Banking Group.
