UK: Greystar and a subsidiary of the Abu Dhabi Investment Authority (ADIA) have agreed to acquire a BTR project from Grosvenor.
The scheme, at the former Peek Freans biscuit factory site in Bermondsey, will feature 1,548 homes, extensive play and public spaces, including a large public roof terrace and pedestrian walkways. It will help to create new job opportunities through 150,000 square feet of flexible employment space, driving additional footfall for local businesses.
The Bermondsey site will incorporate new homes for a range of rents, a new secondary school and employment, as well as cultural and retail spaces. the development will incorporate historic buildings in the area into the plans.
The development was refused planning permission in 2019 due to a lack of affordable housing provision but London mayor Sadiq Khan called in the scheme and gave it the green light.
Since entering the UK market in 2013, Greystar has built a property portfolio worth £6.5 billion, representing more than 14,300 units and comprising both multifamily rental accommodation and student accommodation.
In December 2021, Greystar announced a strategic partnership with ADIA of up to £2.2 billion to develop BTR housing in London and its surrounding commuter towns.
The new site is a four-minute walk from Bermondsey Underground station which is serviced by the Jubilee Line where residents will be able to reach London Bridge in two minutes, Waterloo and Canary Wharf in five minutes, Bond Street in 11 minutes and Stratford in 17 minutes.
Mark Allnutt, senior managing director – Europe at Greystar, said: “The acquisition of Grosvenor’s Bermondsey development site represents another milestone reached in our ongoing strategy to develop thoughtfully designed and professionally-managed rental communities, particularly in light of the current shortage of high-quality rental property in the capital. We look forward to building upon the work Grosvenor has started to deliver new homes and amenities for the people of Bermondsey.”
Heather Topel, director of development at Grosvenor, added: “Our designs create a world-class neighbourhood infused with the history of Bermondsey in a way that both involved and connected its communities and interest in the opportunity to deliver this scheme was exceptionally competitive. Greystar has a strong track record, and environmental and community values aligned to our own and we are confident they will deliver it to an incredibly high standard. We will reinvest the capital from this sale into growth opportunities in our London portfolio and regional investment business.”
Savills London Development Land team acted for Grosvenor. The transaction details are not disclosed.
