Lincoln MGT, a joint venture between Lincoln Property Company and MGT Investment Management, has agreed a £138.75m construction loan with AIG’s Commercial Real Estate Lending business and Homes England, the Government’s housing agency, for a new Build to Rent development at Station Hill in Reading. Savills advised Lincoln MGT on the development loan.
The loan will enable the delivery of 600 Build to Rent private and affordable homes as part of the first phase of the transformative Station Hill mixed use development, creating a vital link from the town centre through to the train station. CallisonRTKL are the Station Hill’s masterplanner and residential architect.
“Our partnership with Lincoln MGT and Homes England at Station Hill exemplifies our long-standing experience with multifamily assets across the globe, while supporting Reading’s inward investment and the growth of the surrounding area. We look forward to seeing the Station Hill project come to life, providing much-needed mixed-use resources for Reading.”John Gardiner, Managing Director, AIG Commercial Real Estate Lending business
The new development will also comprise new public realm, with a substantial investment of c.£50m in the surrounding community infrastructure. The delivery of the first phase of Station Hill marks the next step in further inward investment in Reading, acting as a catalyst for the growth of the surrounding area and contributing to its drive towards city status.
With a focus on sustainability, wellness and technology that is underpinned by Lincoln’s experience and service-led approach to design and customer experience, the first phase residential community is set to become a truly unique offering to the market and benchmark for in-town generational living.
Once fully delivered, Station Hill will provide up to 1,350 new homes, office accommodation for approximately 9,000 new jobs, lifestyle-led space for retail, cafes and restaurants, and a new pedestrian link and activated public realm between the station and the town centre, establishing Station Hill as a new district and destination for Reading.
Construction work on the wider Station Hill development is already underway. The first residential homes in phase one will be ready for occupation from the end of 2022. Work has also started on phase two, which will comprise a 275,000 sq ft office building known as One Station Hill (OSH) – designed by Gensler, a new public square, and a link bridge through the development into the phase one residential community. Both phases of Station Hill will be ready for occupancy by 2024 and will offer a new front door for Reading, unlocking the town centre through level access from the train station.
“We are excited to be working with AIG and Homes England on the delivery of the first phase of the transformative regeneration that is Station Hill. Station Hill will deliver an exceptional mixed-use sustainable environment offering a true live-work location adjacent to Reading Train Station and the beginning of The Elizabeth Line. We are delighted to have chosen AIG and Homes England to work with Lincoln MGT to continue the momentum to deliver our renewed vision for Station Hill and to improve the way in which people visit, and live and work in this town. It will create a platform for Reading to attract investment and fulfil its potential as the true capital of the Southeast.”Callum Thorneycroft, Managing Director, MGT Investment Management