Member Article

Greystar snaps up Royal Mail plots at Nine Elms for £101m

US property investor Greystar is plotting two significant new build to rent (BTR) schemes as part of the massive new commercial and residential neighbourhood in and around Battersea Power Station.

The property company has agreed to acquire a pair of plots from Royal Mail for a total cash consideration of £101m at Nine Elms in Battersea, with Telford Homes already signed on a pre-construction agreement to deliver 894 BTR homes at the scheme.

Greystar and Telford will now pursue detailed planning consent for the site which, if approved, will situate it within walking distance of the extended Northern Line and in the same neighbourhood as the new US Embassy.

While details are understandably scarce at this moment in time, Greystar’s Managing Director of Multifamily, Mark Allnutt has excitedly claimed that the new units will represent a ‘five-star rental’ experience, a not so subtle hint that Greystar is gunning for the top range of the market.

He said: “This will be without question central London’s most exciting rental community. There’s nothing comparable in the UK in terms of scale and resident amenity.

“We believe that London is finally ready for a five-star rental experience and we’re proud to be bringing this to Nine Elms in partnership with Telford Homes, a housebuilder synonymous with quality.”

The financial terms of the deal for the combined 14 acre site will see Greystar stump up £3m now, with a further £98m payable once planning consent has been obtained.

For Telford the contract marks a sizeable increase in their BTR portfolio and follows on from existing schemes with M&G Real Estate, L&Q and Folio London.

Jon Di-Stefano, Chief Executive of Telford Homes said the agreement was a testament to the developer’s growing reputation in the housing sector for both prime and non-prime stock.

He commented: “Telford Homes is becoming established as a significant developer of build to rent housing in London.

“This increasing reputation is helping the Group to secure major opportunities such as this and we are looking forward to assisting Greystar and building a strong partnership with them.”