Greystar and Henderson Park snap up Telford build-to-rent site for £105m

London housebuilder Telford Homes revealed this morning that it has sold one of its largest build-to-rent development sites for more than £100m.

US developer Greystar and European real estate investment platform Henderson Park have snapped up the Equipment Works scheme in Walthamstow, which comprises more than 250 rental homes, for £105.5m in their latest bid to tap into the capital’s growing build-to-rent market.

The 3-acre site, which is currently being developed by Telford and is set to be completed in late 2021, also includes consent for 18,000 square feet of flexible commercial space.

The deal is the latest sign that Telford, which specialises in non-prime London property, has been ramping up its focus on the capital’s rental housing sector, as homeownership rates wane in the wake of affordability pressures.

Last week Telford announced plans for a £160m housing site in Stratford, marking its fifth and largest project in Stratford. 

Read more: Telford Homes to develop £160m Stratford project

In a statement this morning, Telford boss Jon Di-Stefano said: "We are delighted to have secured another forward-funded, build-to-rent sale and especially to have further cemented our strong relationship with Greystar. This transaction demonstrates our increasing commitment to London’s growing build-to-rent market and underpins our strategy to continue to scale our build-to-rent pipeline whilst providing certainty over future revenues and cash flows and delivering excellent returns on capital."

Nick Weber, founding partner of Henderson Park, added: "The demand for housing in London continues to outstrip supply and with home ownership at unaffordable levels for many people, the need for new rental homes is growing rapidly. This shortage is further compounded by the current lack of professionally managed build-to-rent product in the UK, with existing rental stock largely dated and in need of modernisation. This exciting development is in an area experiencing significant regeneration and will bring first class homes to the community of Walthamstow."