Greystar and Henderson Park have made their second major investment in London's build-to-rent sector in three months with the purchase of a development from Telford Homes for £105.5 mln (€120.5 mln).
The 257 apartments being built on the 1.3 hectare Equipment Works site in Walthamstow will increase the joint venture's BTR portfolio in London to around 1,000 units. Henderson Park, a European real estate investment platform, and Greystar Real Estate Partners, a South Carolina-based rental housing specialist, made their first joint purchase in London in March 2017, buying a 172-unit residential portfolio from Barratt Developments for €158 mln.
Greystar and Henderson also acquired a 550-apartment development in Croydon last January for an estimated construction cost of €247 mln.
The Equipment Works site has full planning consent for 337 new homes, including 80 affordable properties and 1,750 m2 of commercial space. The acquisition has been made on a forward-funded basis, with construction due to be completed in the second half of 2021.
Nick Weber, founding partner of Henderson Park, said demand for housing in London was continuing to outstrip supply. He sad: '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.'
Mark Allnutt, senior managing director UK of Greystar, said: '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.'
