Orion Capital Managers has entered the Central London residential development market with one of the first residential schemes to be undertaken by a private equity fund.
Orion Capital Managers has entered the Central London residential development market with one of the first residential schemes to be undertaken by a private equity fund.
Operating through its Orion European Real Estate Fund III CV, the fund manager has bought a residential development site overlooking the City Road Basin at 259 City Road, London EC1, on which it will develop a £150 mln (EUR 171 mln) luxury residential scheme.
The vendor, 259 City Road Limited (259CRL), is owned 50:50 by developer Groveworld and City Road Basin Limited, itself a partnership between British Waterways and Miller Developments
The development will comprise a 30-storey tower with mainly 1-2 bed apartments and larger penthouses. Ground and lower ground levels will contain restaurants, a swimming pool, a health club and parking for 78 cars. The project is scheduled for completion in 2014.
Orion European Real Estate Fund III CV closed at end-2009 with total commitments above target, of EUR 1.28 bn.
Groveworld will act as development manager on behalf of Orion, which will take a 999-year lease on the site.
