Grainger and the Local Pensions Partnership have acquired a 236-home PRS development in Pontoon Dock, E16.
The build-to-rent scheme being developed by Linkcity was procured through the Greater London Authority’s London Development Panel. It forms a new gateway to the Thames Barrier Park in Newham and will deliver 236 homes, with the majority specifically built for the private rented sector.
Vesta, a joint venture between Grainger and the Local Pensions Partnership, the not-for-profit pension services organisation, has entered into a forward funding agreement with Linkcity to acquire the 154 PRS units within the Pontoon Dock scheme. Grainger, through its for-profit registered provider of social housing, will acquire the remaining 82 units (35%) of the scheme, which will be affordable homes.
Grainger will have a 20% equity share of Vesta and will generate long-term fees for management of the PRS homes, while LPP will hold the remaining 80% stake. LPP is managing the investment on behalf of the London Pensions Fund Authority.
While this investment represents LPFA’s first entry into PRS housing, it is part of a £1.2bn property portfolio managed by LPP which includes core property investments in PRS and commercial property across the UK.
Helen Gordon, chief executive of Grainger, said: “This investment builds on Grainger’s £850m PRS investment plan and provides us with a local cluster of over 470 rental homes in east London, giving us significant scale.”
Sir Merrick Cockell, chairman of LPFA, said: “Local pensioners’ investments are actively funding housing opportunities for younger London renters. At the same time, the pension fund benefits from the income and capital growth that are provided by property investments, helping to ensure that the fund has a sustainable future and can pay pensions when they are due, both now and into the future.”
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