The London non-prime resi specialist has sold its Carmen Street site in E14 to M&G Real Estate.

The built-out site will contain 206 homes including a 22-storey tower.

Telford only bought the Carmen Street site last November from Ballymore.

Construction can now start on its second major Private Rented Sector (PRS) scheme following the sale of its Pavilions scheme in north London to L&Q Housing Association for £66.75m in February.

Telford said: “The sale to M&G is on a forward funded basis and will comprise an initial land payment followed by regular payments throughout the construction period and therefore will not require debt finance with only limited equity to be invested by the Group.”

Construction on the site is scheduled for completion in 2019 and 56 subsidised affordable homes on the site will be sold by Telford in a separate transaction to a housing association.

Telford is looking “to explore further PRS opportunities” and said the two transactions to date “are just the start.”

Alex Greaves, Head of Residential Investment at M&G Real Estate, said:  “This partnership with Telford Homes marks a significant point in the evolution of our residential investment strategy.

“This deal adds scale and efficiency to our portfolio, brings additional homes to market and provides our investors with stable long-term income growth.”

Jon Di-Stefano, Chief Executive of Telford Homes, added: “Forward funded PRS transactions offer strong returns and we are very pleased to have swiftly secured our second sale in the sector just a few months after the first.  

“We hope to extend our relationship with M&G as new opportunities arise and as Telford Homes continues to broaden its sales mix with further de-risked forward funded PRS transactions.”