Greystar Real Estate Partners and Henderson Park have exchanged contracts to acquire a residential development site in Croydon which will comprise the tallest towers in the world built using modular construction.
The joint venture partners have acquired the site at 101 George Street, opposite East Croydon station, from Tide Construction and plan to build two towers of 44-storeys and 38-storeys. The scheme, which has full planning permission, will accommodate 550-apartments and include roof gardens at the top of each tower, fully equipped gyms, residents lounge and private dining and event rooms.
The acquisition is the second investment Henderson Park and Greystar have made in joint venture into the London residential private rented sector (PRS), following their £140.5m acquisition of a 172-unit central London residential portfolio from Barratt Developments in March last year. It will include homes for rent on a variety of different terms, including affordable housing, London Living Rent, rental discounts, as well as open market rates. Greystar will manage the apartments with a full-time onsite team to ensure a high-quality rental experience for residents.
Construction modules for 101 George Street will be transported to the site from a factory in Bedford with the electricity prewired and plumbing, furniture and windows already installed. The total build time for the project will take just 24 months, from construction starting to residents moving in to their new homes.
Mark Allnutt, Greystar managing director UK, said: “101 George Street is a strategically significant deal for Greystar and helps us move closer to our target of delivering 10,000 multifamily units in London by 2022. It also means that, when operational, we will have large-scale multifamily developments in four areas of London – Greenford in west London, Sailmakers in east London, Nine Elms in central London and now Croydon in south London. We’re thrilled that Henderson Park has decided to invest a second time with Greystar and we look forward to working closely over the coming months to deliver this exceptional project.”
Nick Weber, founding partner of Henderson Park, added: “This significant acquisition provides us with further critical mass in London’s residential PRS market. Croydon has a long history as a strong business, retail, leisure and residential destination and the town is currently enjoying a real renaissance driven by £5.25bn of inward investment and infrastructure works. This programme of investment will further increase demand for homes and 101 George Street, with its fast modular building methods, will provide much needed supply across all levels of affordability. We are also very pleased to be working with Greystar again and combining our team’s experience with one of the world’s leaders in rented housing.”