London & Quadrant is buying a £65m private rented sector block on the Christie’s warehouse site in Nine Elms, SW8.
The housing association is under offer to forward purchase the PRS element of Bellway’s £300m The Residence development, which comprises 114 flats.
The deal is part of L&Q’s plans to build a major PRS portfolio.
It announced in September 2014 that it was piloting a £250m PRS fund with the aim of investing £1bn over three years. It also plans to double its annual housing completions from 2,000 to 4,000.
L&Q hopes to add more than 650 PRS homes per year within three years, reflecting roughly one-sixth of its planned annual growth.
Christie’s will be L&Q’s second major project in the Nine Elms area. It started construction on a 737-home scheme in Vauxhall in joint venture with Barratt last year.
In total, Bellway has consent for 510 homes, 14,600 sq ft of commercial space and 12,000 sq ft of community use on the 2.7-acre former Christie’s Fine Art Warehouse site.
JLL is advising Bellway.
joanna.bourke@estatesgazette.com
