£105m development deal will result in more than 300 rental homes

Telford Homes has sold a site in east London it bought two years ago to a joint venture which includes US rental housing specialist Greystar.

Telford Homes

The £105.5m deal for the three-acre Equipment Works site in Waltham Forest is the third tie-up between AIM-listed Telford Homes and Greystar, which has partnered with real estate investment firm Henderson Group to develop the land.

The site cost Telford £34m when the housebuilder bought it from developer U+I and Parkdale Investments two years ago and has planning for 337 new rented homes, including 80 affordable homes and nearly 19,000ft² of commercial space.

The sale is on a forward-funded basis, with an initial land payment and regular payments throughout construction.

Nick Weber, a founding partner of Henderson Park, said the demand for housing in the capital was outstripping supply.

The shortage was being compounded by what he called “the current lack of professionally-managed build-to-rent product in the UK, with existing rental stock largely dated and in need of modernisation”.

Last week Telford Homes announced it had exchanged contracts with LCR, the Department for Transport and HS1 Ltd to pay £20m for a one-acre site in Stratford, east London, where it planned to build around 380 homes, half of which were expected to be subsidised affordable housing.