Avanton, the leading London investor-developer, has announced plans to invest up to £500 million in strategic land acquisitions over the next three years as part of a significant expansion into the capital’s lucrative build-to-rent sector.
Already an established operator in the residential build-to-sell market, the announcement underlines Avanton’s intention to expand into the rapidly-growing build-to-rent (BTR) sector in the capital, where there remains a significant lack of high-quality purpose-built rental stock.
The new land fund will target sites across Inner London in Islington, Southwark, Wandsworth, Lambeth, Camden, and in West London including Wimbledon, Hammersmith, and Brent. The plan is to deliver up to 5,000 build-to-rent units between 2021 and 2023. Avanton will acquire sites with land values of £20 million to £100 million, providing for between 300 to 1,000 units per BTR development.
Working both alone and through joint venture partnerships, Avanton will focus its future acquisitions on either consented sites, sites without planning permission or those with existing commercial consents offering the potential for a change of use to residential.
Avantonhas began to assemble a significant portfolio of build-to-rent pipeline projects. In Richmond, Avantonand partner ICG have a newly consented £250 million (GDV) urban-village development on the 4.45 acre Homebase site off Manor Road. The development will deliver 453 high-quality apartments complete with a pocket-park, retail, community and office use, and landscaping, designed by award-winning architectural practise Assael Architecture.
Likewise, on the Old Kent Road in Southwark, Avantonhas consent for the £730 million (GDV) Ruby Triangle project, which will provide 1,414 new homes. Avantonhas a third pipeline site in the London Borough of Brent, which will allow for 500 build-to-rent properties.
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