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LONG HARBOUR CLOSES £156M FORWARD FUNDING AGREEMENT FOR BULD TO RENT SCHEME AT TOTTENHAM HALE
Second phase of Ashley Road development to create a further 315 units
LONDON, 7th September 2020 – Long Harbour has commercially completed its second forward funding deal with Berkeley Square Developments in Tottenham Hale, North London. The deal represents a total investment of £156mn and will create 315 high quality new homes for rent.
The deal follows Long Harbour’s £70m forward funding of the first phase of the Ashley Road Masterplan in May 2019, which will create 166 homes for rent. The latest agreement brings the total of new homes being financed by Long Harbour across both phases of the development to 481.
Located at 16-18 Ashley Road, the development forms part of the wider Ashley Road Masterplan in Tottenham Hale, North London. The second phase will provide a mix of one, two- and three-bedroom apartments, as well as two larger duplexes, and will include 33 homes at Discounted Market Rent (DMR) as well as 400 sqm of commercial space and private resident’s amenity. The scheme will be delivered by Berkeley Square Developments and Long Harbour’s Way of Life residential living platform will manage the properties upon completion in 2023.
The deal is Long Harbour’s latest investment in the Build to Rent (“BtR”) Sector on behalf of the Long Harbour Multi-Family (LHMF) investment programme. LHMF is a joint venture which will continue to deploy an initial £500m of capital into BtR projects over the next 18 months, focusing on high quality BtR schemes of over 150 units in London, the South East and selected regional cities, all of which will be managed by Way of Life.
Rebecca Taylor, Managing Director for LHMF at Long Harbour, said: “We are thrilled to have completed our second transaction in Harringay with Berkley Square Developments, with construction due to commence in the coming months. Covid-19 has demonstrated not only the resilience of the BtR sector as an asset class but the role that BtR will continue to play in delivering the housing need despite an economic downturn. We believe very strongly in the regeneration of the area around Tottenham Hale station and the delivery of the Ashley Road Masterplan demonstrates our continued appetite for investment in the London market, our support for the construction industry and our drive for delivering quality homes for rent.
“The first phase of the scheme is on track to open doors in Summer 2021 and as LHMF has significant capital to deploy we are in active discussions with a number of development partners on sites across London and the UK’s core cities.”
Alan Gavin, Director at Berkey Square Developments, said: “Long Harbour have proven once again their ability to partner on large development transactions, and we are delighted to continue that partnership with this latest forward-funding deal.
This fantastic development sits at the hearth of the Ashley Road Masterplan, and we have worked closely with our Architects to design a building that is beautiful on the inside and out. We are committed to delivering the development to the highest standard.”
Peter Wyatt, Head of Build to Rent and Funding at Knight Frank, said: “Covid-19 has acted as a catalyst for an acceleration of institutional capital into the UK’s residential investment sector. Since March, we’ve seen a number of investors increasing their exposure in the UK market, thanks to its enduring resilience – especially during periods of economic uncertainty. This latest forward-funding deal between LHMF and Berkeley Square Developments highlights this trend, and will result in the delivery of an exceptional second phase at Ashley Road.”
Knight Frank advised Berkley Square Developments.