Housebuilder Inland Homes has agreed terms with a US investor to back its recently launched foray into the private rented sector. The signing of heads of terms suggests a boost to its activities, which launched with an April announcement that it would build to rent at its Drayton Garden Village development near Heathrow.
The unnamed investor will back Inland’s initial PRS project, which is set to increase the scale of the rental element at West Drayton from an earlier 123 unit commitment, up to more than 200 homes.
Inland chief executive Stephen Wicks suggested the deal would lend scale. “We hope this will be the first of quite a few such developments,” he told Property Week. “We’ve got land in the right locations across the south to play a significant role in the sector.”
In April, Inland secured one of the government’s Build to Rent loans for its West Drayton project. The £8.7 million of financing means work is already under way on a phase of 123 one and two bedroom apartments, which are destined for long term rental. The rental apartments will sit within a larger 773 home development at Drayton Garden Village, where the remainder are being sold as they are developed.
Inland, which was established in 2005 and is listed, recently reported a 66% improvement in profits for the year to June 2014. It has a land bank of 3,743 plots with a potential developed value of £1.1 billion. Among the sites with potential for PRS development are Woolwich, where Inland has permission for 152 flats, Ashford Plaza, also with permission for 152 units, and an infill site in Acton.