Telford Homes has signed a £300 million forward-funding deal with and a joint venture between Ridgeback Group and Angelo Gordon to deliver a portfolio of three built-to-rent (BTR) developments across London.
The deal will provide over 750 purpose-built BTR homes across three sites – Capital Interchange Way in Brentford, Mill Road in Ilford, and the former Metroline Bus Garage in Alperton – and marks a major milestone for Telford Homes as it continues to build its growing BTR pipeline as a Trammell Crow Company Developer.
The JV will forward fund 223 BTR units at Capital Interchange Way, which is Telford Homes’ first BTR project in Brentford and will include 45,000 square feet of commercial and retail space, 197 affordable homes, and improvements to the public realm. The acquisition includes 211 BTR homes and 12 Discounted Market Rent (DMR) homes, a residents’ gym, a lounge and co-working space spread across the ground and top floors of the development, and gardens and terraces above a first-floor podium.
The ongoing transformation of Brentford is creating a brand-new neighbourhood in a prominent and well-connected location, close to the River Thames and Kew Gardens. The development is being delivered by a joint venture between Telford Homes and Catalyst by Design, a wholly owned subsidiary of Catalyst Housing. Construction on the site commenced at the start of 2023.
At Mill Road in Ilford, the JV will forward fund all 239 new homes in the purpose-built BTR development, tapping into the growing rental market in Ilford, which has been driven by the ongoing regeneration of the area and opening of the Elizabeth Line (Crossrail). The acquisition includes 162 BTR homes, 55 DMR homes, and 22 London Living Rent (LLR) homes – all of which will be owned and managed as a single community by Ridgeback – alongside over 4,000 square feet of residents’ amenity space throughout the building.
Once complete, the development will also offer an improved public realm with pedestrian access to Ilford’s Elizabeth Line train station and the town centre, on-site play space, and new landscaping along the bank of the River Roding. Construction will commence in February 2023.
The final asset in the portfolio is Alperton Bus Garage, a bespoke development of 306 BTR homes alongside a residents’ lounge, gym, co-working areas, and over 12,000 square feet of manicured residents’ gardens, terraces, and children’s play space at podium level. The development will also deliver 155 affordable homes, which have been acquired by Greenstone.
Telford Homes acquired the site in November 2021, having received planning approval from Brent Council to transform the current bus depot into a high-quality mixed-use residential and commercial development. In addition to new rental homes, the development will deliver 27,400 square feet of light industrial and last mile logistics space, known as Alperton Yard, aimed at supporting start-ups, small businesses, and those in the creative industries. This area is also being acquired by the JV at completion. Demolition commenced in February 2022.
Each scheme will be delivered in accordance with Telford’s ‘Building a Living Legacy’ strategic ambitions. For example, the residential elements will deliver a 46-57% reduction in regulated carbon emissions – beyond Building Regulations requirements. Additionally, BREEAM Excellent ratings are targeted for the commercial and retail space in each development. As part of Telford’s social value strategy, at least 62 new apprentices will be employed through the value chain.
Charlie Weatherill, Capital Markets Director at Telford Homes, comments: “We’re delighted to be working with Angelo Gordon and Ridgeback on these three developments, which will provide much-needed build-to-rent homes in some of London’s most exciting neighbourhoods. Angelo Gordon and Ridgeback share our vision to create high-quality, sustainable rental communities that will deliver enduring value for communities, residents, and investors. This deal is an important step forward in our strategy to scale our build-to-rent pipeline and become the go-to partner for high quality rental accommodation in the capital and beyond.”
George Bossom, Partner at Ridgeback Group, comments: “Ridgeback, alongside our JV partner Angelo Gordon, is pleased to be working with Telford Homes to bring forward these three landmark developments to help meet the needs of the modern renter in these underserved locations. This acquisition demonstrates our continued appetite for investment in London and our objective to deliver high-quality homes for rent across the country.”