Mitsubishi Estate, advised by Europa Capital, has agreed a funding package with UK regeneration specialist Menta to bring forward a £250 mln (€273 mln) regeneration project adjacent to London’s East Croydon station.
The development includes two 25-storey residential buildings designed by Make comprising 338 residential apartments and 20,000 sq ft (1,860 m2) of commercial space. The development will deliver 118 affordable homes to the UK’s largest housing association, Clarion Housing. Construction on site is expected to start immediately with occupation anticipated in 2023.
‘This acquisition continues the expansion of our UK portfolio, following the purchase of our first development in Battersea in July 2019,’ said Yuichiro Shioda, managing director and CEO of Mitsubishi Estate London. ‘Utilising Europa Capital’s expertise in this sector has enabled us to invest in an area of the market that’s supported by strong fundamentals.’
Hugo Black, partner at Europa Capital, said that demand for affordably priced residential assets in London, where demand has outstripped supply for some time, remains robust despite the impact of Covid-19. ‘The sector has held up well over the last few months and we believe that high quality, professionally managed and well serviced buildings with a range of amenities will become more attractive as more people spend more time working from home,’ he added.
Craig Marks, CEO of Menta, added: ‘Having delivered a first phase of 300 new homes on the adjacent site this further development with a blue chip set of partners will result in a total of around 750 new homes, infrastructure and valuable amenity space as its contribution to the East Croydon Masterplan, and the long awaited new station entrance where residents will be able to travel the 11 miles into central London in less than 20 minutes.’
Europa Capital was advised by Cushman & Wakefield. Colliers advised Menta.
