Dutch pension fund APG and UK investment manager Delancey have launched a new joint venture to deliver rental homes in large-scale clusters in Greater London.
Dutch pension fund APG and UK investment manager Delancey have launched a new joint venture to deliver rental homes in large-scale clusters in Greater London.
Delancey and APG said they will be focusing on creating properties with over 600 units located on or adjacent to excellent public transport connections and complemented by retail, leisure and cultural amenities.
The joint venture has made its first move in this strategy with the acquisition of the Elephant & Castle mall which will be redeveloped to create a new ‘South Village’ district with the adjoining Tribeca Square project, which is already owned by Delancey’s principal client fund DV4.
The acquisition of the shopping centre comes two weeks after construction work began at Tribeca Square, which will provide a 46,500 m2 residential led mixed-use development.
Tribeca Square comprises three distinct towers on the current Tribeca Square site: the West Building, the South Building and the North Building. At the lower level the scheme provides retail and leisure space including a food store that has been pre-let to Sainsbury. The homes will be offered for rent rather than for sale by Delancey/APG.
Commenting, Jamie Ritblat, CEO and founder of Delancey, said: 'We are delighted to be continuing the delivery of a significant residential investment strategy in Elephant and Castle with such a high-calibre partner as APG; particularly at a time, when the affordability of housing in London is an increasing concern.'
'This investment adds to APG’s existing London residential exposure and we have the ambition to grow them further,' said Robert-Jan Foortse, head of European property investments at APG. 'At APG we have prior experience with investments in regeneration sites in London, such as South Village, and we think they provide excellent investment opportunities.'
