- 227 new private rented sector homes created as part of wider regeneration scheme in Crawley
- New deal marks the next phase of the first agreement of its kind between an institutional investor and listed housebuilder
LONDON, 17 November 2015 – M&G Real Estate and Crest Nicholson plc, a leading developer in London and the South East of England, have teamed up for a second time to sign a £51.5 million deal to fund, build and let 227 new private rented sector (PRS) homes in Faygate, three miles west of Crawley town centre.
The deal was made on behalf of M&G Real Estate’s UK residential property strategy launched in mid-2013 for UK and international investors, managed by Alex Greaves. The development, known as Kilnwood, forms part of a wider regeneration scheme of 2,400 homes in Crawley by Crest Nicholson plc, a leading developer of sustainable communities.
Crest Nicholson is both landowner and developer of Kilnwood, of which the private rented sector element will provide a mix of one and two bedroom apartments and houses. It is anticipated that the homes will be ready for tenancy between November 2017 and February 2019.
Residents will have use of a communal BBQ area, a tennis court, terrace, and a clubhouse with gym and lounge. In order to appeal more directly to the private rental market, it will offer double bedrooms and greater storage for sharers. A total of 346 car park spaces will be provided, including four electrical car charging units and an onsite letting and management office.
This latest deal marks the next phase of an agreement between M&G Real Estate and Crest Nicholson, the first of its kind between an institutional investor and a listed house builder.
The first phase saw M&G Real Estate provide £25.2m to fund the development of 97 apartments as part of the wider Bath Riverside regeneration scheme within Bath city centre, marking a major opportunity for institutional investors seeking access to the UK residential sector.
Alex Greaves, Head of Residential Investment at M&G Real Estate, comments: “Joining forces with Crest Nicholson marks a milestone in the long term development of the residential sector. It offers a route to delivering much needed housing stock at a much quicker rate and provides a significant opportunity for institutional investors seeking access to the UK residential sector. Our residential strategy provides stable, income-driven returns for investors and, in time, thousands of much-needed, well-managed rental properties.”
Chris Tinker, Executive Board member for Crest Nicholson, adds: “Stimulating new housing markets such as the private rental sector is the only way that the government will be able reach the 240,000 new homes Britain needs each year. Purpose designed PRS schemes such as this in Faygate will enable developers to bring forward and increase the rate of housing delivery on major sites and Crest Nicholson estimates that such schemes will enable it to build on average 250 PRS homes per year across its portfolio. As home ownership falls to its lowest level for a quarter of a century with almost 40 per cent of Brits renting, these professionally owned and managed schemes will also help to increase the quality and ease pressure on the rental market.”