Member Article

Telford Homes offloads £66m-worth of housing in first private rented sector deal

London-based residential property developer, Telford Homes, has announced the sale of the forthcoming The Pavilions development at Caledonian Road for £66.75m.

The transaction will see all 156 homes at the site sold to a subsidiary of housing association L&Q with work expected to conclude by the middle of 2018.

As part of the deal, L&Q, who currently manage over 70,000 homes in London and the South East, will take 96 homes to add to its private rented sector (PRS) portfolio, while the remaining 60 will be utilised as affordable housing.

It marks Telford Homes first sale of a PRS development, where homes have been specifically built for the rental market.

Chief Executive of Telford Homes, Jon Di-Stefano, Chief Executive of Telford Homes, said: “We are delighted to have concluded our first PRS deal with a well-established PRS provider, who are already a valued partner to the Group.

“The strong level of interest shown in The Pavilions by PRS investors confirms the potential of the PRS market anticipated at the time of our equity placing in November 2015.

“Telford Homes continues to benefit from an imbalance between demand and supply of homes in non-prime London and this transaction marks the start of a new aspect to the Group’s sales mix achieving de-risked forward sales with exceptional capital returns.”