Social housing provider Affinity Sutton is exploring options to redevelop the Chelsea Estate, SW3, financed by a significant luxury flats offering.
The group is in discussions with Kensington & Chelsea council to build between 50 and 60 high-end flats for private sale as part of the circa 400-home redevelopment.
Sources suggested prices of up to £1,500 per sq ft could be achieved on the private homes to cross-subsidise the affordable homes in the project.
A source said: “It’s a regeneration scheme. There is no grant funding for that. This is a project which has to be self-financed. The private homes will be a proportion of the scheme but not the majority.
“You can maximise values because of the location but Affinity Sutton is restricted on what it can build.”
It is understood that the social housing provider intends to develop the luxury flats itself.
Affinity Sutton and the council have been working on a masterplan for the area.
The plans are still at an early stage, but are expected to go out to public consultation in the autumn.
The estate, which was completed in 1912 and was one of the first William Sutton Trust Estates developed, currently comprises around 460 flats.
Affinity Sutton plans to accommodate all existing permanent residents in the redeveloped scheme.
The group says it is building more homes than ever for private sale. Recently, it was selected by Ealing council as preferred partner to regenerate Dean Gardens Estate in West Ealing, W13.
That scheme will comprise new affordable and private homes.
Affinity Sutton is also now building the second phase of Durand Close Estate in Carshalton, Surrey, which will see 116 homes built for sale and social rent.
Quod Planning and Jones Lang LaSalle are advising Affinity Sutton.
annabel.dixon@estatesgazette.com
