The development, to be called the Grafton Quarter, will create a residential-led, mixed-use development of 97 flats and houses and an innovative ‘Creative and Cultural Industries’ hub comprising 78 artist/start-up studios. The Gross Development Value (GDV) will be £39.5 million.
The site currently comprises a collection of mid-20th Century industrial buildings with 43,000 square feet of floorspace.
Julian Symons, Director of Development, Savills IM, commented: “This exciting project meets the investment criteria for PLRDF II in terms of geography, price point, returns and lot size. The need for additional quality affordable housing in London is far stronger than in any other part of the country. Grafton Quarter will aim to deliver well designed homes adjacent to a regeneration area: over the next decade Croydon is set to reinvent itself as a major financial and retail centre, which will boost the value of this development.”
Keith Ewart, Director, Urbanwise, commented: “This development will be in an area of London undergoing significant change and regeneration with substantial anticipated growth. This is another great project we are delighted to undertake with Savills IM following our recently announced JV in Callis Yard, Woolwich, as we look to develop large schemes within the London area to meet housing demand.”
PLRDF II has three other residential development sites in London under contract, taking Savills IM’s’ current residential development pipeline for both PLRDF I and PLRDF II to in excess of £500m.
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.
Citigate Dewe Rogerson
Patrick Evans / Stephen Sheppard / James Madsen / Alice Stewart
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