Telford Homes PLC Significant build to rent agreement with Greystar (0853H)
05 June 2017 - 4:00PM
UK Regulatory
TIDMTEF
RNS Number : 0853H
Telford Homes PLC
05 June 2017
5 June 2017
Telford Homes Plc
('Telford Homes' or the 'Group')
Significant build to rent development in partnership with
Greystar
Telford Homes Plc (AIM: TEF) is pleased to announce that it has
signed a pre-construction development agreement with Greystar, a
global real estate company, to deliver 894 build to rent homes,
together with extensive facilities, close to the River Thames at
Nine Elms, Battersea.
Greystar have exchanged contracts to acquire two plots of land
from Royal Mail plc. The pre-construction development agreement
means that Telford Homes will assist Greystar in pursuing a
detailed planning consent for the site. The development will be
within walking distance of two new underground stations on the
extended Northern Line and close to the new US Embassy.
Once planning consent has been secured the pre-construction
development agreement will lead to Telford Homes entering a full
design and build contract with Greystar to deliver the development
for a fixed price. This represents an exciting opportunity for the
Group to significantly expand its existing build to rent portfolio
and commence a partnership with a major worldwide investor in
rental housing.
The terms of the contract include regular payments during the
course of construction and profit paid on practical completion such
that the Group will invest limited equity and no debt. Telford
Homes is not taking any sales or rental risk but the margin earned
will account for full construction risk and therefore is in line
with the Group's target margin for build to rent developments.
Greystar specialises in developing and managing large-scale
rental communities in the United States and entered the UK market
in 2013 building up a rental portfolio worth GBP2.8 billion by
investing in new housing and student accommodation. Telford Homes
represents an excellent delivery partner for large scale investors,
such as Greystar, given that the Group has the skills required to
achieve planning consents and manage and control all construction
work under the brand of a respected London developer. These skills,
coupled with a reputation for delivering a quality product on
programme, assisted the Group in securing this partnership to the
benefit of both Greystar and Telford Homes.
A further announcement will be made when planning consent has
been achieved and the Group enters into the full design and build
contract.
Jon Di-Stefano, Chief Executive of Telford Homes, commented:
"Telford Homes is becoming established as a significant
developer of build to rent housing in London. This increasing
reputation is helping the Group to secure major opportunities such
as this and we are looking forward to assisting Greystar and
building a strong partnership with them.
This development will represent a substantial increase in the
Group's build to rent portfolio alongside existing schemes with
M&G Real Estate, L&Q and Folio London, part of Notting Hill
Housing Group. It is an exciting step for Telford Homes but it does
not change our geographic focus when considering developments for
open market sale. The Board believes the Group's skillset can be
utilised to develop build to rent homes anywhere in London whilst
still maintaining a strong pipeline of developments for individual
buyers in non-prime London locations."
Mark Allnutt, Managing Director Multifamily, Greystar said:
"This will be without question central London's most exciting
rental community. There's nothing comparable in the UK in terms of
scale and resident amenity. We believe that London is finally ready
for a five-star rental experience and we're proud to be bringing
this to Nine Elms in partnership with Telford Homes, a housebuilder
synonymous with quality."
- Ends -
For further information:
Telford Homes Plc
Jon Di-Stefano, Chief Executive
Katie Rogers, Financial Tel: +44 (0) 1992
Director 809 800
Guy Lambert, Head of Corporate www.telfordhomes-ir.london
Communications
Shore Capital (Nomad and
Joint Broker)
Dru Danford / Patrick Castle Tel: +44 (0) 20
7408 4090
Peel Hunt LLP (Joint Broker)
Charles Batten / Capel Irwin Tel: +44 (0) 20
7418 8900
Media enquiries:
Buchanan (PR Adviser)
Henry Harrison-Topham / Tel: +44 (0) 20
Victoria Hayns 7466 5000
telfordhomes@buchanan.uk.com www.buchanan.uk.com
Greystar media enquiries:
TwoBlue Communications
Paul Browne / Jake Hervin Tel: +44 (0) 20
8870 0367
paul@tbcpr.com www.tbcpr.com
Notes to Editors:
About Greystar
Greystar is a leading, fully-integrated, real estate company
that specialises in the investment management, development and
property management of rental housing. Headquartered in Charleston,
South Carolina, with offices throughout the United States, Europe,
and Latin America, Greystar manages approximately 400,000 rental
units in 160 markets worldwide. Greystar is the largest operator of
rental housing in the United States. Greystar manages over US$14
billion in gross assets on behalf of a global network of
institutional investors, including US$5.7 billion of developments
underway.
Since entering the UK market in 2013, Greystar has built up a
rental portfolio worth GBP2.8 billion by investing in new housing
and student accommodation and forward-funded investments in newly
developed build to rent and student accommodation properties.
Greystar aspires to be one of the UK's largest operators of rental
housing. In order to reach this goal, Greystar has a target to
increase its UK portfolio to 10,000 rental units within four
years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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