Development firm Social Capital Partners has appointed property consultancies Allsop and Colliers to secure a lessee and a forward funder for a new housing development in London's Croydon.
The Old Dairy site at Bensham Lane in the London Borough of Croydon will deliver 115 homes, 100% of which will be at affordable rents. The scheme will have a gross development value of £40 mln (€46 mln).
The Old Dairy scheme will be let to a registered affordable housing provider and will provide an innovative and sustainable housing solution for forward funding partners. On maturation of the long lease, the lessee will have the option of purchasing the scheme for a nominal value and the S106 agreement stipulates that the homes remain affordable housing in perpetuity.
Social Capital Partners, set up in 2019 by Shane O’Neill and Christopher Stephens with a combined 40 years’ experience in planning, development, financing, and advisory, is a new breed of ESG-driven developer that is aiming to tackle London’s housing crisis through innovative solutions.
Social Capital Partners’ developments, of which The Old Dairy is the first of its kind, seek to create permanently affordable homes and communities in order to reduce the impact of homelessness on individuals, as well as creating a more sustainable solution for local authorities – against a backdrop of London councils spending more than £1.25 bn a year on temporary accommodation.
Andrew Boyd, partner and head of residential transactional and living markets at Allsop, said: 'Social Capital Partners has alighted on a solution that will make a tangible impact on the housing crisis in London. These new homes – built to the highest standards and as a permanently affordable solution – are a win-win for the individuals and families and registered providers, reducing the authority’s LHA costs while bringing in affordable rental income. Given the rise of impact investing, these affordable homes that offer regeneration opportunities to local communities will be in strong demand from institutional investors looking to deliver social benefits as well as benefitting from stable returns.'
Shane O’Neill, co-founder and principal of Social Capital Partners, said: 'We can deliver self-financing schemes where the asset reverts to council ownership on expiry of the lease, ensuring the council retains these homes in perpetuity.'
