Jamie Ritblat’s Delancey has teamed up with Dutch pension fund APG to build up a portfolio of more than 5,000 rental homes across the capital.
The joint venture wants to deliver a handful of villages comprising between 600 and 3,500 homes each, which it will develop itself. It is eyeing sites close to major transport connections, such as Crossrail, and established amenities, including shops and restaurants.
The portfolio will be seeded with the South Village in Elephant & Castle, SE1. The new district will include a redevelopment of the 327,000 sq ft Elephant & Castle shopping centre, thought to be led by Sovereign Land. The jv bought the property this week from St Modwen and Salhia Real Estate Company for £80m. It will also incorporate Delancey’s existing project in SE1, Tribeca Square, a 500,000 sq ft mixed-use development of circa 650 homes. The pair intend to let the homes direct, with no fees, on a choice of one, two and three-year tenancies.
Delancey and APG are currently engaging in three or four conversations on further opportunities.
Earlier this year, APG invested £158m in Grainger’s PRS fund, G:res 1.
Delancey already has a PRS model, Get Living London, backed by Qatari Diar, at East Village, the former Olympic Athletes Village.
Delancey director Stafford Lancaster said: “With East Village, we have first-mover advantage. We are keen to follow and adopt similar principles. We see very strong demand for this product from consumers.”
• Criterion Capital extended its PRS portfolio this week. It plans to convert Canterbury House in Croydon into a £20m, 108-flat block. It bought the vacant 62,600 sq ft property for £4.5m from a private overseas investor. Criterion aims to deliver more than 600 new homes for rent. Gerald Eve advised.
Annabel.Dixon@estatesgazette.com
