Unveiling our new logo
Deal marks M&G Real Estate’s fourth investor-housebuilder partnership and a growing presence in the PRS market for Durkan
M&G as a group has made residential commitments of over £656 million and 2338 homes since 2013*
LONDON, 23 March 2017 – M&G Real Estate, one of the UK’s largest property investors, and Durkan, a leading developer and constructor of high quality housing projects across London and the Home Counties, have signed a £71.4 million deal to finance and build 206 new private rental homes on Chapel Road, Ilford.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy launched in mid-2013 for UK and international investors, managed by Alex Greaves. Durkan will be developer and contractor for the scheme, which is anticipated to be ready for occupation by April 2020, shortly after Crossrail has opened.
The development, known as Britannia Music Site, aims to provide a mix of one, two and three-bedroom homes within two buildings, set around a new public courtyard. Located within two minutes’ walk of Ilford station, which is being extensively refurbished as part of the Crossrail Programme, future occupiers will only be 17 minutes away from Canary Wharf, 9 minutes from Stratford and 14 minutes from Liverpool Street Station.
This latest deal marks the fourth investor-housebuilder agreement by M&G Real Estate, and closely follows the investor’s second deal with Telford Homes to finance and build 125 new private rental homes in Upton Park, also in East London. For Durkan it signifies a growing presence in the private rental market, with previous private rented sector schemes including the flagship ‘Vertex’ development in Croydon in partnership with Amicus Horizon.
Alex Greaves, Head of Residential Investment at M&G Real Estate, comments: “We very much welcome this initial deal with Durkan and look forward to working with them on other schemes. Following our partnerships and deals with Crest Nicholson, Telford Homes and Mulbury, this deal demonstrates our commitment to providing renters in the UK with the highest quality of homes in well-managed, sustainable communities.
“The build to rent sector offers long-term growth potential with considerable diversification benefits for investors – and our strategy ensures scale and efficiency, which in turn provides a major opportunity for institutional investors seeking access to the UK residential sector.”
Durkan is providing 206 private rental units in partnership with M&G Real Estate, as well as 93 affordable homes and 55 for private sale.
Danny Durkan, Executive Chairman of Durkan, adds: “We are delighted to have closed our first transaction with M&G Real Estate and look forward to further deals with the fund. Durkan has excellent land acquisition, development and contracting capabilities which provide a strong platform for partnership transactions in the growing build to rent sector.
“The Britannia Music Site project is exciting for a number of reasons. The way we develop new housing in the UK is changing and the provision of private rental homes by developers such as ourselves is now a central part of the housing mix.”
For further information please contact:
Charles Font (Redwood Consulting for M&G Real Estate)
Tel: 020 7828 5553
Mike Newby (Camargue for Durkan)
Tel: 01242 577277
Notes to Editors:
*M&G’s total residential commitments include 1704 units within the M&G UK Residential Property strategy and 634 units within M&G’s Secured Property Income Fund.