Developer Related Argent and joint venture partner investment management company Invesco Real Estate have appointed the main contractor and secured debt finance for the development of Brent Cross Town’s second Build to Rent scheme. Enabling the construction of 286 new homes at Brent Cross Town in North London, construction group Galliford Try will deliver the scheme and over 17,000 sq ft of amenity and retail space.
The £97m debt financing was provided by LaSalle Investment Management, further building on the significant momentum at the £8bn net zero park town in London. The debt financing takes the form of a Green Loan, lending dedicated to sustainable projects, which is linked to the strong environmental credentials of the Build to Rent building. LaSalle Debt Investments’ Green Loan structures are compliant with the Loan Market Association’s green loan framework.
“There is strong momentum behind our Build to Rent portfolio with our first rental homes now completed at Author King’s Cross and over 1,000 Build to Rent homes under construction. Our joint venture with Invesco Real Estate at Brent Cross Town and the financing from LaSalle Investment Management is helping meet an increasing gap in the market and addressing the city’s growing demand for high-quality rental properties in vibrant places.”Tom Goodall, Managing Director (MD), Related Argent
Designed by Allies & Morrison with interiors by Conran and Partners, the 286 new homes range from studio to three-bedroom apartments. The development includes block amenities shared with the first Build to Rent building at Brent Cross Town.
Amenities include a large central lobby with 24-hour concierge, wellness hub, gym, fitness studios, 25m pool and sauna, work from home-spaces, private dining spaces, roof top terraces, podium gardens, guest suites and a cinema.
The new Build to Rent development is designed to be supplied with very low carbon heating and cooling from the development’s electric district heating and cooling network, which is being delivered in partnership with Vattenfall. It also aims to deliver a measurable net gain in biodiversity and will minimise construction waste and embodied carbon through efficient off-site manufacturing. The overall Brent Cross Town development is also committed to reaching net zero by 2030.
“When Invesco and Related Argent closed our joint venture in October 2022, we only had one build contract and one loan in place. 12 months later, we now have secured all four build contracts and the necessary loan facilities to enable the project to move forward as we had planned. We are delighted that the Project Team achieved this key milestone which now allows the project to move forward into the delivery stage to enable these assets to be delivered into our investor’s existing Build to Rent portfolio of just under 1,100 units.”John German, Managing Director (MD), Residential Investments, Invesco Real Estate
This announcement demonstrates the significant progress being made at Brent Cross Town in providing much-needed homes to the area. Six buildings are now underway, the first of which will be completed from the end of 2024.
In total, over 930 homes – including affordable market sale and Build to Rent homes are on-site along with 662 student rooms in partnership with Fusion Students.
Sheffield Hallam University will open its first satellite campus outside of Yorkshire at Brent Cross Town, and a joint venture between Audley Group and Senior Living Investment Partners (Octopus Real Estate and Pension Investment Corporation) will create a retirement village with around 150 homes.
“We are delighted to be working once again with Related Argent on one of the most significant Build to Rent schemes in London. Our business has a strong track record in producing high-quality residential developments with the sector remaining a key focus for our Building business within our Sustainable Growth Strategy.”Bill Hocking, Chief Executive, Galliford Try
Brent Cross Town is being delivered in partnership between Related Argent and Barnet Council. It will create a total of 6,700 new homes, three million sq ft of offices, a high street and schools surrounded by 50 acres of parks and playing fields, including the new 4.5-acre Claremont Park which was completed last year.
The new town will benefit from the convenience of Brent Cross West station, which will be the first major new mainline station in London in over a decade when it opens later this year, connecting with King’s Cross St Pancras in just 12 minutes.
The new contractor appointment of Galliford Try and financing is part of the joint venture between Related Argent and Invesco Real Estate, formed at the end of 2022 to deliver £600m of Gross Development Value.
“We are very pleased to work with Related Argent and Invesco Real Estate to provide the debt financing for this project, which brings together market leaders in urban regeneration and best-in-class accommodation in a great location with strong transport links to Central London. The living sector is one of LaSalle’s highest convictions across our European lending and equity strategies. This financing is LaSalle’s 26th development loan made since 2012 and builds on our development lending track record, providing flexible, sustainable loans to high-quality sponsors.”Robert Fay, Director, Debt Investments, LaSalle Investment Management
Galliford Try’s appointment by the joint venture incorporates plans to deliver the second Build to Rent building at Brent Cross Town will bring the total number of Build to Rent homes under construction at the development to 535. Homes will be developed and managed by Related Argent, which has just opened a brand-new premium Build to Rent development – Author King’s Cross – on the King’s Cross estate. The first residents moved into the development in October 2023.
“Barnet’s new park town has been carefully designed to meet the needs of our residents now and in the future with a range of options including social housing, private sale homes, student accommodation and homes built to rent. I welcome the progress being made on Brent Cross Town’s first new homes that are being built specifically with Barnet renters in mind.”Councillor Ross Houston, Deputy Leader and Cabinet Member, Barnet Council, Homes and Regeneration
The second Build to Rent development at Brent Cross Town forms a major part of Related Argent’s portfolio of over 3,000 rental homes alongside King’s Cross and Tottenham Hale. The company’s Build to Rent portfolio draws on the established record of Related Companies, which has over 71,000 homes across the United States.