LONDON (Alliance News) - Telford Homes PLC on Tuesday said it is selling its Carmen Street site in east London for GBP63.2 million to M&G Real Estate, the UK property investor and real-estate fund management arm of M&G Investments.
Telford, a residential property developer, said the sale included the freehold interest in the land, as well as 150 open market homes together with commercial space that Telford will construct. The Carmen Street development, which was purchased by Telford in November, has full planning permission to include a 22-storey tower and 206 new homes. Telford said it will sell the 56 subsidised affordable homes on the site in a separate transaction to a housing association.
The sale to M&G Real Estate is on a forward-funded basis and will comprise an initial land payment followed by regular payments throughout the construction period. Therefore it will not require debt finance with only limited equity to be invested by Telford, the company said.
This is Telford's second transaction in the private rented sector, and Telford said this is "just the start of the potential for the private rented sector to become a permanent and more significant part of the group's sales mix."
"Forward funded private rented sector transactions offer strong returns, and we are very pleased to have swiftly secured our second sale in the sector just a few months after the first. We hope to extend our relationship with M&G as new opportunities arise and as Telford Homes continues to broaden its sales mix with further de-risked forward funded private rented sector transactions," said Telford Homes Chief Executive Jon Di-Stefano.
Telford Homes will post its full year results, for the year ended March 31, on Wednesday.
Shares in Telford Homes were up 2.6% at 370.55 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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