M&G is close to agreeing a deal to buy Durkan’s Britannia Music School scheme in east London.
M&G is understood to be paying more than £60m for the scheme, which has planning permission for 354 homes.
Under the arrangement, M&G will forward fund the scheme, which first received planning in 2013, and which Durkan will build out.
Plans exist for four towers ranging in heights up to 23 storeys. One tower will consist of 55 homes for private sale, another 93 affordable, which will be sold to a housing association, with M&G taking the remaining two towers of flats.
Durkan has been searching for finance to build the scheme since 2013. In January this year it received funding from the GLA, agreeing a £25m loan through the housing zone initiative.
At the time, Durkan was planning to build 93 affordable flats, 206 privately-rented homes and 55 homes for sale, as well as 9,311 sq ft of commercial space
The scheme will see the first institutional rental investment into Ilford, which is seeing growing interest owing to its relative affordability and new Crossrail station.
Kennedy Wilson Europe Real Estate bought 294 homes at Pioneer Point in 2015 through a non-performing loan acquisition. Sainsbury’s is hoping to build nearly 700 homes above its shopping centre site. Meanwhile, Meyer Bergman is selling the Ilford Exchange shopping centre, which has planning for 214 homes above it.
JLL is advising Durkan on the sale.
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