Housing association L&Q has bought an 800-home residential development opportunity in Reading, Berkshire, from TH Real Estate.
The eight-acre site at Kenavon Drive sits on the Kennet and Avon canal, and was once the home of the Huntley & Palmers biscuit factory.
L&Q is working up plans for between 700 and 800 homes, ground-floor commercial uses, two new public squares and upgrades to the public realm.
Around a third of the homes will be affordable, with a split between private rent and private sale for the rest.
Depending on the mix, the scheme could have an end value of more than £150m.
Over the past year L&Q has ramped up its housebuilding operations, with the launch of a dedicated private rented sector arm and the acquisition of larger peripheral London sites, including Barking Riverside and Beam Park, with Countryside.
It is undergoing merger discussions with the Hyde Group and East Thames housing associations. The merged company would create one of the largest housebuilders in the country with the stated intention of delivering 100,000 homes by 2025.
Wealthy commuter-belt towns such as Reading are being sought out by developers looking to tap into demand for centres outside the overheated London market.
Average house prices in the town stand at around £320,000, according to Rightmove, and it offers rail access to London in less than 30 minutes, while Crossrail is set to arrive in 2018.
James Cobb, director in the residential land team at JLL, said: “This is the first significant place-making site within eastern Reading and will set the benchmark for future developments of this kind in the city.
JLL acted for TH Real Estate.
To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @AmberRoltEG or @estatesgazette
