Telford will now help rental housing investor Greystar pursue detailed planning consent for two plots of land, which the latter is set to acquire from Royal Mail PLC.
Once consent has been secured, the agreement will lead to Telford entering a full design and build contract with Greystar to deliver the development for a fixed price.
“Telford Homes is becoming established as a significant developer of build-to-rent housing in London,” said Jon Di-Stefano, chief executive of Telford Homes (pictured above).
- Housebuilder anticipates record profits
- Northern line extension boosts Battersea house price growth
- 10 more affordable homes earmarked for Nine Elms
“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.”
The terms of the contract include regular payments during the course of construction and profit paid on practical completion, meaning Telford will invest limited equity and no debt.
The developer is not taking any sales or rental risk, but the margin earned will account for full construction risk.
This is in line with the group’s target margin for build-to-rent developments.
“This will be without question central London’s most exciting rental community,” added Mark Allnutt, managing director multifamily at Greystar.
“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.”