Savills Investment Management has acquired a two properties in the south-western London district of Putney for a £100 mln (€127 mln) residential-led scheme in London.
The properties at 45-53 Putney High Street and 329-339 Putney Bridge Road are to be redeveloped on behalf of the Prime London Residential Fund II (PLRDF II), a joint venture between Savills IM and London-based investor, Trust Real Estate.
The site is a two-minute walk from the Thames, less than five minutes from Putney Station, Putney Bridge Underground Station and within a 10-minute walk of East Putney Tube. It currently comprises 50,000 sq ft (4,650 m2) of retail (including a Boots chemist), restaurant, office space and a large service yard. The proposal is to create a residential-led, mixed-use development with an expected gross development value (GDV) of over £100 mln (€127 mln).
Julian Symons, director of development at Savills IM, commented: 'We are very pleased to have acquired this exciting opportunity which has the potential to create a truly special residential-led scheme to enhance and uplift this part of Putney. We are confident it will have strong appeal to locals and prospective occupiers and buyers.'
PLRDF II has four other residential development sites in London, taking Savills IM’s current residential development pipeline for both PLRDF I and PLRDF II to in excess of £500 mln.
Savills IM said that PLRDF II allows investors to share in development profits by investing alongside 'proven developers' in London residential development transactions. While PLRDF I focussed on Prime Central London, PLRDF II is seeking to capitalise on the fundamental shortage of housing stock in the capital by targeting mid-market residential developments - typically £500 to £1,250 per square foot - in select locations. The fund aims to deliver a net return to investors of 15%+.
