Development Securities has selected L&Q as its residential partner for a mixed-use scheme at 399 Edgware Road, NW9.
Under the partnership, L&Q will fund the construction and delivery costs for 183 flats and town houses. Development Securities will act as development manager.
Sales profits generated will be split between Development Securities and L&Q, and the deal is anticipated to generate total profit of up to £12m for Development Securities over the next three years.
The deal will release an immediate land receipt of £16m to Development Securities, generating profit of £4m above the current book value of this element of the scheme.
The seven-acre, £150m, mixed-use project also includes a 81,000 sq ft Morrisons supermarket.
Homes at the scheme are due to complete in Q3 2017.
Michael Marx, chief executive at Development Securities, said: “The funding of the residential quarter and the Morrisons foodstore have together released £26m of cash, equal to the book value of the entire scheme. These phases could realise combined profits of up to £17m in the near-term to the company from this previously non-income producing asset.”
