Southern Housing Group has bought an £85m consented mixed-use development in east London from the Aitch Group.
Knight Frank advised Aitch Group in the sale of the 1.6-acre site at 1-7 Dace Road, Hackney Wick, E3.
The development has full planning consent for 110 homes and a gross area of 68,000 sq ft of flexible use creative workspace. It comprises four blocks of between five and six storeys, with some single-storey elements. Plans also include a public space with a central courtyard and a road connecting Stour Road with Dace Road.
The scheme has an estimated end value of £85m and was designed by Buckley Gray Yeoman.
Ellie Cunningham, an associate for Knight Frank City & East Residential Development, said: “This fully consented development site enables the delivery of a genuinely mixed-use scheme in the heart of east London, and in one of London’s fastest emerging residential and commercial markets.
“Residential price growth in the local area has increased by 68% in the past five years and the new-build schemes in Hackney Wick have been immensely successful, particularly with local buyers.”
She noted that the area had been transformed by flagship schemes including Delancey’s Here East and Lendlease’s International Quarter. The Dace Road site was one of the last remaining developments in Hackney Wick. Cunningham said the deal illustrated “the demand to capitalise on the growth of this burgeoning market”.
The site is around half a mile from Hackney Wick Overground station and near Queen Elizabeth Olympic Park, Victoria Park and the canals of east London. It has five warehouse buildings with vacant possession since last month.
Southern Housing Group is one of the largest housing associations in London and the South East and manages some 28,000 homes with more than 66,000 residents. Aitch Group is building 256 flats and creating more than 60,000 sq ft of workspace at five other schemes in Hackney Wick. These are expected to be completed in Q1 2019.
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