US private equity group Lone Star is making its first direct investment into the London real estate market by acquiring an island site in Elephant & Castle.
US private equity group Lone Star is making its first direct investment into the London real estate market by acquiring an island site in Elephant & Castle.
Lone Star, acting on behalf of its Real Estate Fund III, has joined forces with luxury London developer Oakmayne Properties to transform the former Eileen House location into a 41-storey residential tower providing 335 new homes, as well as office and retail space.
Oakmayne will market the scheme and the company's SCM unit be the development manager. The acquisition brings further momentum to the regeneration currently underway in Elephant & Castle which has recently attracted several investors including Lend Lease and Delancey.
Planning permission for the site was obtained in January 2014 and the partners intend to complete the current demolition programme during the coming weeks and to start construction on site by the end of 2014, with a planned completion of the scheme during 2017.
Oakmayne has previously completed residential developments at Steedman Street and Crampton Street, helping to kick start the regeneration of Elephant & Castle. It is now the development partner to the Delancey/APG joint venture in building out the 55,700 m2 mixed use scheme at Elephant Road.
DTZ acted as disposal agent for the sale of the site to the partners.
Lone Star Real Estate Fund III was formed in October 2013 after raising $7 bn (€5.1 bn) in capital commitments.
Oakmayne, established in 1993, has completed over 40 development projects in Central London creating over 1,500 residential properties, two hotels and over 9,290 m2 of commercial space.
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