Greystar And ADIA Secure £600M Development Loan As Royal London Enters BTR Sector
Greystar and the Abu Dhabi Investment Authority have secured a huge development loan from a consortium of overseas banks for a £1B London build-to-rent development, the same day a new institutional investor announced its entry to the sector.
The joint venture secured a development facility to fund the construction of the Bermondsey Project, a 1,624-home scheme in south London. The loan was provided by a consortium of Standard Chartered Bank, First Abu Dhabi Bank, Oversea-Chinese Banking Corporation and Emirates NBD.
McAleer & Rushe, John Sisk & Son and McLaren Construction were appointed contractors on the scheme, and construction began earlier this year. The first homes will be ready for occupation in autumn 2025. The project is scheduled to be fully completed by 2027.
Of the 1,624 homes, 338 will be for social rent and will be delivered by Aldar-owned company London Square. Once completed, it will be owned and managed by independent provider Square Roots.
Greystar and ADIA bought the scheme, on the site of a former biscuit factory, from Grosvenor last year.
In a separate deal, Royal London Asset Management Property acquired 500 apartments in Bracknell and Slough, south-east England, its first investment in the UK BTR sector.
Both assets will be managed by Royal London’s newly launched residential property management platform, ProperTies Living, which the company set up to maintain control of the operational assets.
Royal London is targeting a portfolio of 8,000 BTR units in suburban and commuter markets in the UK’s largest cities, midsized regional cities and district centres. Whilst its initial investments had focussed on apartment blocks, the strategy will also seek to deploy into single-family housing.
The first deals include a 349-apartment site in Bracknell and a 151-apartment building in Slough. The Slough asset was completed this year. The Bracknell deal is a forward funding, with completion of the building set for 2027.
