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Telford Homes BTR development at Upton Park sold for £48.6m

Property developer Telford Homes has sold its proposed build to rent (BTR) development at Upton Park to M&G Real Estate.

The pair have exchanged contracts on a £48.6m deal for The Forge at Redclyffe Road for which Telford has planning permission for 192 new homes which includes 67 affordable properties sold to a housing association separately.

It marks the second forward funded development that M&G have snapped up off the property developer following the sale of Carmen Road, and is also Telford’s third BTR site to be sold.

According to the terms of the agreement, M&G will pay an initial land payment for the freehold on the site followed by regular payments throughout the construction period, which Telford say will mean they do not require debt financing.

Jon Di-Stefano, Chief Executive of Telford Homes, said that BTR remains a ‘significant focus’ for the developer, providing ‘certainty’ over revenues and cash flows and delivering ‘strong returns’ on its capital.

He added: “The sale of The Forge cements the strong relationship that we have formed with M&G Real Estate and we are delighted to be working with them again following the successful sale of Carmen Street earlier this year.

“Now that we are developing two schemes together I look forward to working closely with Alex Greaves and the M&G team and exploring ways of extending our partnership as we move into 2017.”

Alex Greaves, Head of Residential Investment at M&G Real Estate, commented: “This deal further demonstrates our ability to deploy capital and our continued commitment to increase the supply of high quality, sustainable rental communities to London’s housing market.

“Our residential strategy provides a route to delivering much needed housing stock at a much quicker rate and, in time, thousands of well-managed rental properties.”