Redrow Homes has agreed a deal to sell 186 build-to-rent (BTR) homes to M&G Real Estate for £82.7m.
The deal will fund the delivery of one-, two- and three-bedroom BTR homes at Redrow’s £1.2bn Colindale Gardens development in Colindale, north London, that are due for completion in 2021.
Collindale Gardens is a new community set across 48 acres on the site of the former Peel Centre Metropolitan Police training college and is expected to deliver more than 2,900 new homes over the next 10 years.
The sale to M&G is Redrow’s second BTR deal at Colindale Gardens. In 2016, the housebuilder partnered with L&Q to deliver 211 private rental homes.
Mark Parker, managing director for Redrow Homes East London, said the deal was “another exciting step forward” for Colindale Gardens and Redrow.
“The wider area is fast becoming a hotspot for families and young professionals and our development will offer all the attributes that customers prioritise, including excellent connectivity, green open spaces and an abundance of amenities on their doorstep,” he added.
Third BTR transaction
The acquisition marks M&G’s third BTR transaction this year and is being made on behalf of the M&G UK Residential Property Fund.
Housebuilders came under fire in the Letwin Review last week for allegedly building identical homes of the same tenure and holding back the sale of those homes to avoid flooding the market and driving down prices.
Sir Oliver Letwin said he wanted to see a mix of different house types and tenures, including BTR, being delivered on large housing developments to speed up delivery.