London residential development

Cordea Savills, the international property investment manager, the international property investment manager, has purchased a site in Woolwich, London, on behalf of its Prime London Residential Development Fund II (‘PLRDF II’) in joint venture with Urbanwise. 

The site, called Callis Yard, benefits from full planning consent for 152 new residential units and is the first of two that Urbanwise are undertaking with PLRDF II. The development will be 400m from the new Woolwich Arsenal Crossrail station and will include a children’s play centre and gymnasium. Development of the site is expected to start in the autumn and is scheduled to complete shortly before Crossrail becomes operational in 2018.

Julian Symons, Director of Development, Cordea Savills, commented: “Callis Yard is a fantastic scheme within one of London’s most exciting regeneration areas. The access to local services and excellent public transport links will make this a highly sought after residential development. Investors’ attention is increasingly turning to areas beyond the prime postcodes where there is a greater shortage of stock, proven demand and a pool of talented developers seeking funding to address the balance.”

Keith Ewart, Director, Urbanwise, commented, “Callis Yard will play a vital role in rejuvenating the local area and will also showcase strong sustainability credentials through its efficient use of under-utilised land, modern design and renewable technologies. We are pleased to be embarking on this partnership with Cordea Savills, furthering our development activity on larger schemes within London areas where housing demand can be more readily met.”

PLRDF II has three other residential development sites in London under contract, taking Cordea Savills’ current residential development pipeline for both PLRDF I and PLRDF II to in excess of £500m GDV.

Like the first Fund, PLRDF II allows investors to share in development profits by investing alongside proven developers in London residential development transactions. While PLRDF I focused on Prime Central London, PLRDF II is seeking to capitalise on the fundamental shortage of housing stock in the capital by targeting mid-market (typically c. £500 to £1,250 per sq ft) residential developments in select locations. The Fund aims to deliver a net return to investors of 15% - 18% IRR.

Urbanwise is a mixed use residential led developer operating throughout London and the South East, predominantly in joint venture.