HUB and Bridges Fund Management have agreed a £100m forward funding deal with Legal & General to develop a 251-unit build to rent tower in Croydon.
The tower sits within the wider Taberner House development, which also includes 21-, 19- and 13-storey buildings, that features 513 homes of which 40% will be affordable as well as new public realm. As part of the development, the adjacent Queen’s Gardens will be enlarged with new landscaping and amenities.
Dan Batterton, BTR fund manager at Legal & General, said: “Our funding deal will act as a catalyst for further housing development in Croydon and will help support the wider regeneration of the area. Bringing together the development expertise of HUB, the progressive long term vision of Croydon Council and our private capital we are able to unlock the development of much needed housing supply, delivering real UK growth and helping to transform Croydon over the long term.”
The latest deal takes L&G’s BTR pipeline to 2,000 homes with 6,000 in planning, development or operation by the end of 2019. L&G has also raised pension fund capital for an open-ended BTR fund alongside a £600m joint venture between Legal & General Capital and PGGM
Completion of the Taberner House development is expected in 2021. Savills advised HUB on the forward funding deal with Legal & General.
Reacting to the deal, Steve Sanham, HUB managing director, added: “Taberner House is a hugely important development for Croydon and after an extensive process of engagement with the community and other stakeholders we are very excited that work on the scheme is now underway. The deal with Legal & General is a massive vote of confidence not only in the quality of the scheme that we are bringing forward, but in Croydon itself – a vibrant, innovative and dynamic town with a proud history and a strong identity.”
Addleshaw Goddard advised the joint venture between HUB and Bridges Ventures.