The 206-home development on Chapel Road in Ilford is anticipated to be ready for occupation by April 2020, shortly after Crossrail has opened.

Durkan will also be providing 93 affordable homes and 55 for private sale within the development.

Known as Britannia Music Site, the development will provide a mix of one-, two- and three-bedroom homes in two buildings located within two minutes’ walk of Ilford station, which is part of the Crossrail programme.

Danny Durkan, executive chairman of Durkan, said it was delighted to have closed its first transaction with M&G and looked 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.

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“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.”

The deal is the fourth investor-housebuilder agreement signed by M&G Real Estate and follows its deal with Telford Homes to finance and build 125 new homes in Upton Park in east London.

Alex Greaves, head of residential investment at M&G Real Estate, said this deal demonstrated its 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.”