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.”