Durkan signs £71m deal for resi rental towers
M&G Real Estate and Durkan have signed a £71.4m deal to finance and build 206 new private rental homes in Ilford.
Durkan will be developer and contractor for the scheme which is scheduled for completion by April 2020.
The Britannia Music Site development will provide a mix of 350 one, two and three-bedroom homes within two buildings, set around a new public courtyard.
This latest deal marks the fourth investor-housebuilder agreement by M&G Real Estate, and closely follows the investor’s second deal with Telford Homes to finance and build 125 new private rental homes in nearby Upton Park.
Durkan has a growing presence in the private rental market, with previous schemes including the flagship ‘Vertex’ development in Croydon in partnership with Amicus Horizon.
Alex Greaves, Head of Residential Investment at M&G Real Estate, said: “We very much welcome this initial deal with Durkan and look forward to working with them on other schemes.
“Following our partnerships and deals with Crest Nicholson, Telford Homes and Mulbury, this deal demonstrates our commitment to providing renters in the UK with the highest quality of homes in well-managed, sustainable communities.
“The build to rent sector offers long-term growth potential with considerable diversification benefits for investors – and our strategy ensures scale and efficiency, which in turn provides a major opportunity for institutional investors seeking access to the UK residential sector.”
Danny Durkan, Executive Chairman of Durkan, said: “We are delighted to have closed our first transaction with M&G Real Estate and look forward to further deals with the fund.
“Durkan has excellent land acquisition, development and contracting capabilities which provide a strong platform for partnership transactions in the growing build to rent sector.
“The Britannia Music Site project is exciting for a number of reasons. The way we develop new housing in the UK is changing and the provision of private rental homes by developers such as ourselves is now a central part of the housing mix.”
Grant Prior, Construction Enquirer