London-based international property company Strawberry Star has received an £83.3m loan from Urban Exposure to develop the 6.8-acre site Lu2on in London’s Luton commuter belt.
The scheme has a GDV of £240m and comprises 785 apartments, a 203-bed hotel, a medical and wellbeing centre and a public plaza.
The senior development finance facility completed in November. It will finance the construction of the first residential phase of 400 homes (19.5% affordable), initial ground works for phase two and the public plaza. Phase one has a GDV of £94.6m.
The site is a two-minute walk from Luton Airport Parkway railway station, 1.1 miles from Luton Airport and a 20-minute walk from Luton town centre.
Randeesh Sandhu, chief executive of Urban Exposure, said: “This development will be hugely beneficial for the local community and reinforces our focus on the provision of core housing for first-time buyers and young professionals.”
Kekul Shah, director of capital at Strawberry Star, said: “Lu2on is our first major foray into the London commuter belt to offer the UK capital’s lifestyle in Luton at prices achievable for buyers – especially first-time buyers, young families and commuting professionals.”
Shah noted the great opportunity in places like Luton as London-based buyers turn to commuter towns with fast transport links to the capital.
Housebuilders are increasingly opting for satellite towns as the capital’s unaffordable housing market pushes buyers outside the M25. Slowing sales and stretched Help to Buy, alongside stricter planning and affordable housing policy, means that even in the outer boroughs development is becoming strained, with larger schemes emerging in towns including Slough, Staines, Milton Keynes, Rochester and Luton.
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