Last checked at 22 Jan 2014 07:00
22 January 2014
Grainger plc (the "Group", "Company")
GRAINGER RECEIVES PLANNING FOR 'BUILD TO RENT' RESIDENTIAL DEVELOPMENTS IN THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
22 January 2014: Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest listed residential property owner and manager, today announces that The Royal Borough of Kensington and Chelsea ("RBKC", or "the Council") has granted detailed planning permission for 84 new homes across two sites in the borough, comprising 53 new homes on the former car park site at Young Street and 31 new homes at Hortensia Road. Combined the two developments will have a gross development value of over £110 million, and construction is anticipated to commence within a year.
Grainger, which was selected in September 2012 by RBKC to develop and manage mixed tenure housing on the council's land, will deliver a variety of tenure types across the two developments.
More than 50% of the homes across both sites will be built specifically for the private rented sector. These homes will be managed by Grainger under a 125 year agreement, for which they will receive a management fee. The Council will retain the freehold and will share a proportion of the long term rental income stream with Grainger.
A proportion of the development at Hortensia Road will be affordable housing, including six four-bedroom family houses. In addition, Grainger will provide flexible commercial space on the ground floor at the Hortensia Road site.
David Walters, Development Director for Grainger plc, said: "Having worked closely with our partner RBKC and the local community we are delighted to have successfully taken these sites through the planning process. We now look forward to demonstrating our considerable expertise in delivering some of the first truly long term professionally managed private rented homes in central London."
Andrew Cunningham, Chief Executive of Grainger plc, added: "We have been closely involved in the development of the Private Rented Sector, and these schemes demonstrate our expertise at the forefront of our industry.
"This innovative scheme will provide much needed homes for a variety of tenure types in Central London, and I believe this could become an appropriate model for other Local Authorities and developers to adopt who are looking to provide homes for the Private Rented Sector."
The schemes were designed by Assael architects. DP9 were the planning consultants.
-ENDS-
For further information:
Grainger plc - Kurt Mueller
Tel: +44 (0) 20 7795 4700
Corporate:
FTI Consulting - Stephanie Highett/ Dido Laurimore/ Will Henderson,
Tel: +44 (0) 20 7831 3113
Project specific:
London Communications Agency - Robert Gordon Clark
Tel: +44 (0) 20 7612 8480
Notes to editors:
Outline details of the deal
Grainger will develop the affordable, private for sale and private rented residential accommodation on both sites (Hortensia Road and Young Street). The freehold of the land will remain in RBKC's ownership. Grainger will fund and manage the delivery of the projects; on completion RBKC will receive a share of the rental income with Grainger, who will also manage the properties for a fee for the duration of the 125 year agreement.
The sites - 19-27 Young Street
The site is a council-owned car park run by NCP, located just off of Kensington High Street and historic Kensington Square. Grainger will redevelop the car park into 53, high quality homes for sale and rent. The plans also include 25 parking spaces for residents, a landscaped courtyard and an attractive entrance with a manned lobby.
The sites - Hortensia Road
The Hortensia Road site is located on an important corner of King's Road and Hortensia Road. The council-owned land, which sits next to the Carlyle Building, will be developed into 31 private rented and affordable family homes with a courtyard for tenants, planting along Hortensia and Kings Road and a flexible, non-residential ground floor.
Grainger plc - company background information
Grainger plc is the UK's largest listed residential property owner and manager, with circa £3.0bn of residential assets under management across the UK and Germany. Grainger generates income through:
- Sales of properties when they achieve optimum valuations
- Rent from its portfolio of tenanted properties
- Fees for the management of residential properties and the provision of its expert services to select third party clients.
Additionally, Grainger is a leading provider of equity release products through its award-winning subsidiary brand, Bridgewater Equity Release. Grainger was established in 1912 in Newcastle upon Tyne, where it remains headquartered. It has eight offices across the UK and Germany. Grainger is a constituent of the FTSE 250 on the London Stock Exchange and the FTSE4Good index. In 2012 and 2013, Grainger was awarded the UK's Residential Asset Manager of the Year at the RESI Awards.
END