(Alliance News) - Residential property developer Telford Homes PLC said Thursday it secured a GBP280 million contract to design and build 900 homes in London for Henderson Park and Greystar Real Estate Partners.
The contract will see Telford deliver 894 build-to-rent homes at Nine Elms Park, Battersea.
The deal follows a pre-construction development agreement secured in June 2017. Since then, Henderson Park and Greystar have secured planning permissions and completed the GBP101 million purchase of the land from Royal Mail Group PLC.
The development is expected to be completed by late 2024 following initial home delivery in 2022 and is worth GBP276.4 million, to be paid in monthly instalments dependent on work undertaken.
For the year ended March, Telford generated GBP40.1 million in pretax profit on revenue of GBP354.3 million.
The property is located near "extensive" resident amenities and is within walking distance of two stations of the Northern Line underground network.
"We are delighted to be building this exciting scheme for Henderson Park and Greystar," Telford Chief Executive Officer Jon Di-Stefano said. "We have been working on the detailed design for some time such that we can immediately start work on site."
"We continue to make progress against our objective to increase the group's output of build to rent homes in London, and this contract with Henderson Park and Greystar, with whom we have a strong relationship, highlights our position as a trusted partner at the forefront of this fast growing sector," Di-Stefano added.
The development is already included in the 4,900 homes pipeline previously reported.
Shares in Telford were 1.8% higher at 317.00 pence in London on Thursday.