City & Docklands and HGP announce equity partnership on flagship regeneration scheme North Kensington Gate, with £73m development facility from Cheyne Capital Real Estate
- 208 homes to be built on the edge of the Old Oak Common regeneration area, including 58 affordable homes
- HGP have committed £14m equity, with £73m debt from Cheyne Capital Real Estate
- Construction work has commenced onsite
Today, 16th February 2023, City & Docklands Property Group and Housing Growth Partnership (HGP) have announced an equity partnership to develop 208 homes, including 58 affordable homes, in a scheme ranging from 7 to 24 storeys.
North Kensington Gate is a gateway regeneration site within the OPDC regeneration area. It will be a 5 minute walk from the new Old Oak Common transport super-hub, the link between the Elizabeth Line and HS2 which is set to be the largest and best-connected station in the UK. The development will deliver some of the first homes within this west London regeneration area, contributing to the OPDC’s overall target of delivering 25,500 homes in the next 20 years.
Housing Growth Partnership is investing £14m equity in the deal, with lender Cheyne Capital Real Estate committing £73m of development debt.
The scheme has been designed to deliver 208 one, two and three bedroom homes, together with residents amenities that will include an onsite resident and business lounge, sky terrace and landscaped gardens. Residents will also have access to the Mary Seacole bar and casual dining, artist studios and a beautiful outside seating area leading to the landscaped Mary Seacole Gardens & Grand Union Canal at the adjacent City & Docklands development, Mitre Yard.
This represents HGP’s first investment with City & Docklands, and is the largest investment made since the expansion of the HGP III Fund this year. This deal is funded by HGP’s parent company Lloyds Banking Group to accelerate equity investment into larger urban schemes and a wider range of residential sectors.
Rachel Miller, Investment Director at HGP commented: “We are delighted to be supporting our new and highly experienced partner City & Docklands to develop these homes which will catalyse this key brownfield regeneration site in London. The transaction represents HGP’s ambition in scaling up our investments to tackle housing challenges, and our remit to support the growth of our development partners.”
Anna Bulach at Cheyne Capital Real Estate commented: “We are delighted to be the lender of choice yet again to City & Docklands and their new joint venture partner Housing Growth Partnership, and to continue supporting their efforts in driving forward the delivery of high quality homes across London. The development occupies an important position at the Eastern gateway to one of the largest regeneration projects in the UK. We look forward to seeing North Kensington Gate lead the way for similar developments in the area in the coming years.”
Gary Sacks, Chairman and CEO at City & Docklands adds: “We are very happy to be partnering with HGP on such a key regeneration site, within one of Europe’s most high-profile and exciting regeneration projects. We are also pleased to be developing the site with debt funding from our longstanding development debt-providers, Cheyne Capital Real Estate. This development follows the delivery of 701 homes at One West Point in North Acton, and will contribute to the overall delivery of more than 1150 homes in west London by City & Docklands, in the next two years.”