The Residential Land Partnership, a joint venture between Schroder Real Estate Investment Management and Palmer Capital, has made its first two purchases.
Backed by £30m of initial commitments from a local authority pension fund and a corporate pension fund, it has used £16.5m of capital on two projects.
The first acquisition, completed at the end of November, comprises 11 acres of freehold land in Shepperton, south-west London. It was bought for £6m from private owners. The site is currently used for light industrial, external storage, residential and waste transfer purposes. It is located in a predominantly residential area and has significant potential for residential and healthcare redevelopment.
The deal for the second asset exchanged last week – a 20-acre freehold site in the village of Kings Langley, Hertfordshire. The site comprises 48,000 sq ft of B1/B8 buildings, yards, hardstanding, a three-bedroom house and open land.
The first two acquisitions were both acquired in a jv with Palmer Capital-backed Angle Property.
Further fundraising for RLP is continuing, with a target raise of £125m.
Angle property director James Good said: “Our plans are to engage with the local planning authorities and other local stakeholders before bringing forward two high-quality residential-led developments that will provide more appropriate uses on these sites.”
Graeme Rutter, head of Schroder Real Estate Capital Partners, added: “The first two deals are expected to deliver returns in excess of the performance objective for RLP. There are further deals in the pipeline and we expect investor commitments to be drawn ahead of the original business plan.
To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette
