Linkcity signs agreements to bring PRS scheme at London’s Pontoon Dock to lifeJuly 24th 2017
Linkcity, the property development company, has signed agreements with Grainger plc, the UK’s largest listed residential landlord, and the Local Pensions Partnership, to fund the creation of a build-to-rent development in Pontoon Dock, in London’s Royal Docks, procured through the Greater London Authority’s (GLA) London Development Panel.
The development represents a further milestone in the regeneration of the Royal Docks. It will form a new gateway to the Thames Barrier Park in the London Borough of Newham and will deliver 236 high-quality homes, with the majority specifically built for the private rented sector.
Vesta, a joint venture between Grainger plc and the Local Pensions Partnership, has entered into a forward funding agreement with Linkcity to acquire the 154 PRS units within the scheme. In addition, Grainger, through its for-profit registered provider, Grainger Trust, will acquire the remaining 82 units (35%) of the scheme, which will be affordable homes.
Grainger will have a 20% equity share of Vesta, while the Local Pensions Partnership will hold the remaining 80% stake. The Local Pensions Partnership is managing the investment on behalf of the London Pensions Fund Authority (LPFA).
Linkcity is developing the scheme, building on its previous experience of PRS developments including Hallsville Quarter in Canning Town, London Road in Barking, and The Forum in Birmingham. Bouygues UK is the main contractor, with construction starting this summer and completion due in early 2020.
While this investment represents the London Pensions Fund Authority’s first entry into PRS housing, it is part of a £1.2 billion property portfolio managed by the Local Pensions Partnership which includes core property investments in PRS and commercial property across the UK.
James Murray, Deputy Mayor for Housing and Residential Development, said:
“I am pleased to see this development is making significant progress, building much-needed new and affordable homes for rent on land owned by the Mayor’s office.
“This project shows the public and private sectors, funded in large part by pension investments, working together to help build the homes our city so desperately needs.”
Linkcity’s Managing Director, Nicolas Guérin, said:
“These significant agreements pave the way not only for much-needed new homes but also the continued regeneration of the Royal Docks, new shops, landscaping and improved access to the Thames Barrier Park. Working in partnership is a key part of our approach, and we are excited to be working again with Grainger and the London Pensions Fund Authority to bring another PRS scheme to life.”
Helen Gordon, Chief Executive of Grainger, said:
“We are pleased to announce this innovative partnership between Grainger and the Local Pensions Partnership and Grainger’s third project with Linkcity and Bouygues UK, which is unlocking a 0.69 acre site owned by the Greater London Authority to deliver 236 new high-quality rental homes in Pontoon Dock in East London. This investment builds on Grainger’s £850 million PRS investment plan and provides us with a local cluster of over 470 rental homes in East London, giving us significant scale.”
Sir Merrick Cockell, Chairman of London Pensions Fund Authority, said:
“We are delighted to be collaborating with Grainger on this development. This is an excellent example of how pension funds can help bridge the intergenerational divide by investing in assets that deliver benefits to young and older Londoners alike.
“Local pensioners’ investments are actively funding housing opportunities for younger London renters. At the same time, the pension fund benefits from the income and capital growth that are provided by property investments, helping to ensure that the fund has a sustainable future and can pay pensions when they are due, both now and into the future.”
For more information, visit the Pontoon Dock website.Category: Development news
Tags: Build to rent, financial close, funding, GLA, Grainger, Local Pensions Partnership, London, London Pensions Fund Authority, Pontoon Dock, PRS, Royal Docks, Thames Barrier Park