The deal sees Telford effectively buy stakes in four north and east London schemes with a £500m development value on a debt free basis.
These scheme are City North adjacent to Finsbury Park station, the refurbishment of the Balfron Tower in Poplar, two phases of development at Gallions Quarter near Royal Albert Dock and the regeneration of Chrisp Street Market in Poplar.
City North is a mixed-use development of 355 apartments and 109,000 sq ft of retail, leisure and office space in a joint venture with the Business Design Centre in Islington.
The scheme includes two 23-storey towers linked by a 12-storey terrace building. The site has full planning permission and incorporates plans to improve the facilities at the adjacent Finsbury Park station.
Telford Homes will immediately work with the Business Design Centre to ensure that construction can commence in 2016 with completion expected in 2020.
The gross development value of City North is in excess of £200m and will add over £100m to Telford’s development pipeline.
Balfron Tower (above) is an iconic 26-storey grade II listed building in Poplar. The project involves the refurbishment of 146 existing homes in a joint venture with Londonewcastle and the owners, Poplar HARCA.
The development is subject to receipt of planning permission, and the joint venture has been working with architects Studio Egret West and interior designers Abe Rogers to get the go-ahead to start work early next year.
Telford Homes owns a 25% interest in the scheme which is expected to add over £15m of revenue to the development pipeline.
Gallions Quarter (above) is a multi-phase development adjacent to Gallions Reach DLR station near Royal Albert Dock. The development is controlled by Notting Hill Housing Group.
Telford Homes is acquiring a 50% interest in two of the phases to be developed in partnership with the housing association.
The first of these phases has a detailed planning consent for 292 new homes subject to signing a section 106 agreement and the other phase has outline consent for a further 254 homes.
The value of the deal has been deferred and becomes payable on securing the legal interest in the development. Assuming this goes ahead the two phases will add over £75m to the group’s development pipeline.
The first phase is expected to start in 2016 and be completed by 2020 with the remaining phase commencing at that point.
The regeneration of Chrisp Street market is a major development opportunity in partnership with Poplar HARCA.
Telford Homes has a longstanding relationship with Poplar HARCA and will now work together with them to further their vision of transforming the area around the existing market square into a new commercial and leisure destination.
The development is expected to include several hundred new homes in a location that has recently been announced as one of the Greater London Authority’s new Housing Zones.
The proposals require substantial consultation with local residents, commercial occupiers, the London Borough of Tower Hamlets and other interested parties.
The ultimate acquisition of the development from Poplar HARCA is subject to achieving all necessary consents. The aim is to commence development in 2017 with phased completions anticipated over a seven year construction programme.
Poplar HARCA is expected to retain a small interest in the development, which has the potential to add over £300m to the group’s longer term development pipeline.
Rick de Blaby, chief executive of United House Developments said: “This transaction completes a wholesale restructuring of the United House Group which started last summer, when we demerged our construction business.
“United House Group is now in a debt free position and liberated to develop out the balance of our portfolio, whose end value exceeds £150m, and return to our core expertise of delivering bespoke, niche London residential developments.”
