Tag Archives: hayes

Invesco commits £33m to private rented sector with Hayes buy

Investment manager Invesco Real Estate has agreed to forward purchase a £32.5 million private rented sector investment in Hayes, west London. The deal with Be:Here, building group Willmott Dixon’s private rented sector developer, will fund the development of 118 flats that will be ready for renters in 2016.

Invesco has made the investment in what is called the Gatefold Building, on behalf of an unnamed local authority pension fund.

Be:Here will develop the Gatefold Building, with Invesco’s backing

The site has been through a number of hands recently, with Be:Here purchasing it from previous joint owners Development Securities and Cathedral Group in December. Dev Secs and Cathedral bought the 18 acre Old Vinyl Factory site in Hayes in 2011, and have secured permission for a major comprehensive redevelopment including more than 600 homes. In recent months, the pair have agreed a merger, and have plans to develop their own private rented sector homes within the project boundaries.

Be:Here will develop out the site in Hayes, and will manage the units on an ongoing basis following completion. The company has another site, in east London, and will now be able to recycle the cash from the Hayes project into building up its portfolio.

While the project is Invesco Real Estate’s first commitment to the UK private rented sector, the company has already committed funds to similar projects elsewhere in Europe. Around £106 million has been spent in Germany, supporting two multi-family housing projects, and new director of residential investments John German is keen to do more.

“We believe it is paramount to form partnerships with developers who are able to create viable investment opportunities in this sector and we are therefore pleased to be partnering with Be:Here, an experienced developer, who has a strong track record of delivering similar high quality schemes in Greater London,” said German. “We hope that this will be the first of a number of similar transactions with Be:Here.”

“IRE believes that the greater London residential market remains one of the most important real estate markets in the world for occupiers and investors, creating long-term demand and liquidity for high quality products. We expect investments in this market to out-perform the mainstream UK residential market.”

L&Q tipped to link with DevSecs for major PRS projects around London

Housing association London & Quadrant looks to be close to partnering developer Development Securities in creating a £200 million portfolio of up to 800 private rented homes on several sites in greater London.

Development Securities revealed in January that it was looking for a joint venture partner, potentially the first step in the creation of a larger private rented sector housing portfolio. Now, according to a news report by Property Week, London & Quadrant is preparing to sign up to help create the portfolio. Agent JLL is advising the developer on potential partners.

The developer, well known for its sometimes adventurous stance in the market, has purchased a number of sites with planning permission for homes. Those that might be included in the deal with L&Q include:
Market Place, Romford with 91 flats in two phases
399 Edgware Road, a site with permission for a mixed project including 183 homes
Valentines House, Ilford, which could be redeveloped to include 110 homes
The Old Vinyl Factory, Hayes where 200 flats could be built
Shepherds Bush Market, with potential for 120 homes
Cross Quarter, Abbey Wood with 140 flats
Development Securities has previously said it was considering how to get the best outcome from its sites, noting in a past market report: “This could include land disposals, joint ventures or direct development as a means to extract maximum value from our portfolio. The growing private-rented sector could also provide a strategic option for us in the delivery of the consented residential element of some of selected schemes.”

London & Quadrant has its hand on nearly 70,000 homes in London and the south east, but has yet to get involved actively in the private rented sector, in contrast with some of its more adventurous housing association peers.

Last September, the housing association indicated its interest in the private rented sector, when it sponsored a research report delivered by the Centre for London, called Stressed, a review of London’s private rental sector. At the time, L&Q’s Susi Schafer said: “We sponsored this report in recognition of the growing role of the PRS and the need to better understand the challenges faced by the sector. We believe L&Q and other housing associations have an important role in growing and improving PRS.”