Tag Archives: london & quadrant

London & Quadrant grabs Nine Elms PRS flats

Housing association London & Quadrant is in pole position to purchase the innovative private rented sector part of a larger housing scheme in Nine Elms, London.

The £65m deal will see L&Q take over 114 apartments which are part of house builder Bellway’s redevelopment of the Christies Fine Arts warehouse. The private rented flats were part of a combined project of 510 homes, which includes market homes for sale, and an affordable housing element.

The private rented sector element of the project was accepted by planners as a contribution towards the section 106 benefits of the scheme – see details previously reported here. The project was approved by Wandsworth borough in London, which has set out to take a proactive stance to promote private rented housing, and will review project details accordingly. As a result the tenancies will only be available to renters who have a local connection, while lease periods of up to five years will be offered, to provide security of tenure.

London & Quadrant is one of the few housing associations to have made clear its desire to get into the private rented sector. Last year, the company said it wanted to generate a £1 billion fund to invest in the sector. However, progress has been slower than planned – in 2012, L&Q was quoted in the publication Inside Housing as aiming to assemble a 1,000 strong private rented portfolio within three years.

London & Quadrant makes major bid to grow PRS activities

Housing association London & Quadrant is planning a major push into the private rented sector, and is looking for investors to support a £1 billion fund to support the growth. The group wants to double its current 2,000 homes a year output, in London and the south east.

L&Q is already partnering to achieve larger scale developments and has already worked with housebuilder Barratt on the Altitude development in east London. It is also working closely with Development Securities on residential developments including the Old Vinyl Factory site in Hayes, where a number of private rental flats are proposed. Currently, L&Q owns or manages around 70,000 homes across the south east, though many of these will be affordable housing  only tenants on local authority housing need lists.

While many housing associations are looking at ways to expand their operations, few are yet active in the private rental market. However, a recent report suggested many are making substantial surpluses, thanks to rising rents, and therefore will be looking to reinvest those profits in further housing ventures.

A L&Q spokesman revealed to the Property Week publication: “We are currently piloting our PRS development with a fund of £250 million. We aim to increase our investment to £1 billion within the next three years.  From year three onwards, a sixth of our total development output will be designated for PRS.”

 

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.”