Construction to begin on first major phase of new homes and retail
Related Argent, one of the most respected owner, developer, operators in UK property, has formed a joint venture with Invesco Real Estate, the global real estate investment manager which is acting on behalf of a US separate account client, to deliver £600m of Gross Development Value (“GDV”) at the £8Bn Brent Cross Town, including the first major phase of homes, retail and leisure. It plans to bring forward 800 market sale and Build-to-Rent (BtR) homes, as well as retail and dining. Construction will begin in October 2022 and is set to be completed in 2025.
The overall Brent Cross Town development is being delivered in partnership between Related Argent and Barnet Council. Brent Cross Town will be one of the UK’s largest net zero town centres once completed.
The investment in Brent Cross Town against a challenging global economic backdrop is a testament to the strength of the project and the attractiveness of sustainable and vibrant mixed-use places. Located in North London, the 180-acre development features 50-acres of parks and playing fields, 6,700 new homes and 3 million sq ft of offices along with retail, leisure, student accommodation and schools. Brent Cross Town will benefit from the new Brent Cross West station, connecting the area to Central London in 12-minutes and adding to the existing strong transport links including the London Underground. The Brent Cross West Station and associated rail works are being funded as part of a £418m government grant funding agreement with the Department of Levelling Up Housing and Communities (DLUHC).
The joint venture announcement with Invesco Real Estate follows a successful residential sales launch earlier in the year for the first 277 market sale homes at Brent Cross Town with over 50% already sold. These homes benefit from overlooking the newly opened 4.5-acre Claremont Park, demonstrating the green premium with increased demand for living near parks in the Capital.
The Related Argent and Invesco Real Estate joint venture has appointed Midgard as contractor on the first element of the project and will start construction on the new homes and retail later this month. The residential homes have been designed by award-winning architects Squire and Partners, Maccreanor Lavington and Allies and Morrison, with interiors by Woods Bagot and Conran and Partners. The landscape masterplan was designed by globally renowned landscape architects Gillespies. The BtR homes will also be enhanced by Related’s experience in managing over 80,000 rental homes across the US, including the Related Rentals platform, delivering superior homes, amenities and services.
The Brent Cross Town development is already well underway with construction due to start on the first 120 affordable homes and, in partnership with Fusion Students, 662 new student homes. In 2020, the scheme secured a £148m Homes England funding facility to deliver upfront public realm including new parks and infrastructure works which have helped unlock the delivery of the new homes.
Kenneth P.Wong, Co-Founder of Related Argent and COO of Related Companies said, “We are proud to partner with Invesco Real Estate’s investor to deliver the first major phase of homes and retail at Brent Cross Town. There is tremendous momentum behind this development with infrastructure and public realm being delivered first, affordable and student homes underway, strong residential sales and solid demand for commercial office space.
“Developments of this magnitude need excellent partners. We would like to thank Barnet Council, our Joint Venture Partner, for sharing the vision to create a new net zero town for London and for their hard work. We would also like to thank Homes England for its early funding which has helped unlock the new homes. Public and private partnerships are critical in delivering sustainable regeneration projects which move our cities forward.”
John German, Managing Director, Residential Investments at Invesco Real Estate said,
“We believe our investment in the Brent Cross Town development will have a strong, positive impact on the UK multi-family market, and the investment we have made today underpins our continued conviction in the sector. To invest £600m of GDV on behalf of one of our US separate account clients into this development is exciting and therefore partnering with a best-in-class partner is non-negotiable for us. We look forward to working with the Related Argent team.
“Our commitment to the UK multi-family sector, as well as our wider investment into European residential, remains strong. This milestone transaction means we have now invested circa £1.7Bn into the UK market since 2014, of which circa £1Bn is on behalf of our US separate account client.”
In addition to the partnership with Invesco Real Estate, Related Argent secured a debt funding facility with NatWest.
