June 20, 2019HENDERSON PARK AND GREYSTAR ACQUIRE SITE AT THE FORMER ROYAL MAIL DEPOT IN NINE ELMS, LONDON FOR £101 MILLION AHEAD OF 894 HOME PRS DEVELOPMENT
20 June, 2019 - London, UK. Henderson Park, the European real estate investment platform, and Greystar Real Estate Partners (‘Greystar’), the global leader in rental housing, announce that they have acquired a site located at the former Royal Mail depot in Nine Elms, London, for £101 million, which they intend to develop into an 894-home Build to Rent (BTR) residential scheme, as they continue to build their Private Rented Sector (PRS) portfolio. The development is fully funded with equity from Henderson Park and Greystar, and a £385 million, six-year whole-loan facility provided by investment firm Cain International.
This is the fourth London investment that Henderson Park and Greystar have made in joint venture and extends their high-quality PRS portfolio in London to almost 2,000 apartments, further establishing the partners as a leading UK investor in the sector.
Planning permission, secured by Greystar and Henderson Park, was granted in March 2019 for the development, which is to be one of the largest purpose-designed build to rent developments in the UK. The joint venture has entered into a full design and build contract with Telford Homes Plc who will commence construction this month and deliver the project in multiple phases. First homes are expected to be delivered in 2022 with full completion in 2024.
The development is located in a prime location in the Battersea Nine Elms regeneration area and will deliver 641,000 sq ft of residential space across two distinct buildings, providing a mix of studios, one, two and three-bedroom apartments. The high-specification managed scheme will include 25,000 sq ft of best-in-class tenant amenities including two rooftop swimming pools and will also comprise 25,000 sq ft of retail and community space, set amongst landscaped gardens.
The buildings will be a short walk from both the new Nine Elms and Battersea Power Station London Underground Zone 1 stations which form part of the Northern Line extension and sit adjacent to the planned Linear Park, which runs across the entire length of the regeneration scheme, with both the new US Embassy and the Battersea Power Station redevelopment also nearby.
Having established their first joint venture two years ago, Henderson Park and Greystar have quickly built a substantial PRS portfolio across London catering to a diverse demographic of renters; these include build to rent schemes under construction in Walthamstow and Croydon and a standing portfolio of apartments located in Aldgate, Fulham and Nine Elms.
Nick Weber, Founding Partner of Henderson Park, commented: “This significant investment to create almost 900 new homes demonstrates our ongoing commitment to the private rented sector in London by increasing our portfolio to almost 2,000 homes. We continue to look for further opportunities to invest in this undersupplied sector and bring forward new developments, helping satisfy the city’s growing demand for high-quality and professionally managed rental housing. This deal also extends our commitment to the Battersea Nine Elms area, a hugely exciting part of London which benefits from a prime Zone 1 location, major infrastructure investment and the fact that it is fast becoming established as a vibrant new community for Londoners. We look forward to continuing to grow our strong relationship with Greystar both in Nine Elms and across London.”
Mark Allnutt, Senior Managing Director UK of Greystar, said: “We are excited to be moving ahead at speed with construction at Nine Elms after receiving final approval for the site. This marks a significant milestone for our growth in the UK and further consolidates Greystar’s position as one of the leading Build to Rent developers in London.”
“The London market is significantly under-supplied when it comes to these types of developments, and existing rental homes are often outdated or poorly managed. This development at Nine Elms will ensure we continue to be part of London’s housing solution, creating thousands of much-needed, high-quality homes for an ever-increasing number of renters. We look forward to working with our partners at Henderson Park to expand the BTR offering in London and contributing to the development of the Nine Elms area for future generations.”
Jon Di-Stefano, Chief Executive Officer of Telford Homes, said: “We are delighted to be building this exciting scheme for Henderson Park and Greystar. We continue to make progress against our objective to increase the Group’s output of build to rent homes in London, and this contract with Henderson Park and Greystar, with whom we have a strong relationship, highlights our position as a trusted partner at the forefront of this fast growing sector.”
John Cole, Managing Principal of Cain International, added: “We are proud to provide this substantial loan, which demonstrates our commitment to partnering in order to address market demand and our debt platform’s flexibility and firepower to provide outsized loans.”
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For more information contact:
| FTI Consulting for Henderson Park: Richard Sunderland, Ellie Sweeney, Eve Kirmatzis | Tel: +44 (0)20 3727 1000[email protected] |
| Greystar media enquiries:Finsbury (PR adviser)Gordon Simpson, James Thompson | Tel: +44 (0) 20 7251 3801[email protected][email protected] |
| Telford Homes media enquiries:Buchanan (PR adviser)Henry Harrison-Topham, Victoria Hayns, Steph Watson | Tel: +44 (0) 20 7466 5000[email protected] |
NOTES TO EDITORS:
About Henderson Park
Henderson Park is a pan-European private equity real estate manager based in London. It has invested over $5 billion in building a portfolio of real estate assets across Europe, primarily targeting Europe’s gateway and capital cities. It seeks high-quality assets in prime locations where it can identify potential to unlock or create value through asset management, or by taking on and working through complex situations. Henderson Park works with and creates long-term strategic relationships with best in class local operating partners. Henderson Park is led by Nick Weber, its Founding Partner and CEO.
About Greystar
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and property management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates an estimated $115B of real estate in over 180 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing approximately 500,000 units/beds, and has a robust institutional investment management platform with $32B of assets under management including $12BN of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.
