Private rented sector developer and manager Fizzy Living has committed to buy 136 apartments in the Lewisham Gateway scheme in south London. The flats will be within a 193 unit first phase being built by Muse Developments, part of an overall scheme that is destined to include up to 800 homes in total, under various forms of tenure.
For Fizzy, the deal is the fifth site the company has taken on. It is the first transaction to make use of a recent injection of £200 million from the Abu Dhabi Investment Authority, which has provided a long term funding commitment to Fizzy’s growth. Fizzy is a stand alone private rented sector brand owned by Thames Valley Housing.
For Muse, the opportunity to forward sell the majority of the first phase of its development will give the company the capital to continue developing the second phase at a faster pace. Increasingly residential developers are looking to private rented sector landlords to buy early phase developments, helping them to fund a faster completion of major redevelopment projects.