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M&G and Durkan partner up for 206-home PRS site in Ilford

UK property investor M&G Real Estate has announced a new partnership with housing developer Durkan to deliver new homes for rent in Ilford in time for the opening of the new Crossrail station in the area.

The £71.4m deal will see the London-based developer build 206 new private rental homes on Chapel Road at the Britannia Music Site, featuring a mix of one, two and three-bedroomed homes set across two buildings.

In what is the fourth investor-housebuilder partnership for M&G, the new Ilford site will be located just two minutes’ walk from the new Ilford Crossrail station, providing commuters with a 17 minute journey from the east London town to Canary Wharf.

The agreement now brings the total number of homes committed by M&G since 2013 to 2,338 representing investment of over £656m.

Following the announcement, Alex Greaves, ‎Head of Residential Investment at M&G Real Estate, said: “We very much welcome this initial deal with Durkan and look forward to working with them on other schemes.

“Following our partnerships and deals with Crest Nicholson, Telford Homes and Mulbury, this deal demonstrates our commitment to providing renters in the UK with the highest quality of homes in well-managed, sustainable communities.

“The build to rent sector offers long-term growth potential with considerable diversification benefits for investors – and our strategy ensures scale and efficiency, which in turn provides a major opportunity for institutional investors seeking access to the UK residential sector.”

Danny Durkan, Executive Chairman of Durkan, commented: “We are delighted to have closed our first transaction with M&G Real Estate and look forward to further deals with the fund.

“Durkan has excellent land acquisition, development and contracting capabilities which provide a strong platform for partnership transactions in the growing build to rent sector.

“The Britannia Music Site project is exciting for a number of reasons. The way we develop new housing in the UK is changing and the provision of private rental homes by developers such as ourselves is now a central part of the housing mix.”

Plans to develop the site have been in the offing since 2010 but stalled after the developer struggled to secure funding until last year when the project secured a £25m loan from the Greater London Authority.

The partnership with M&G now means the development can finally get underway with completion earmarked for April 2020.