Native Land, Grosvenor and Amcorp Properties of Malaysia have today confirmed the acquisition of Pavilion D at NEO Bankside as a rental investment.
A price of £50m has been agreed by Native Land, Grosvenor and Amcorp Properties of Malaysia for Pavilion D, backed by a £27.5m loan facility from Lloyds Banking Group.
Pavilion D, a 53 apartment building, will offer studio, 1, 2 and 3 bedroom apartments for rent ranging from £425 per week to £2,875 per week. The purchase is due for completion in August 2012.The acquisition is Native Land’s second rental investment and the company intends to make further selective investments in London’s prime private rented sector.
Commenting on the acquisition, Alasdair Nicholls, Chief Executive of Native Land said:‘
’Our decision to retain a longer term investment in NEO Bankside through this acquisition, reflects our strong belief in the future of the rental market in prime London locations. This also underlines the appeal of our developments as long term real estate investments and we are keen to share the benefits that our investors in Pavilions A, B and C enjoy. The quality, broad appeal and success of NEO Bankside can be measured by the interest we have received from investors and owner-occupiers alike, and the significant number of sales completed to date.’’
Craig McWilliam, Executive Director at Grosvenor added:
“The ongoing strength of the London rental market, particularly for well designed schemes in prime locations, creates an attractive investment proposition. NEO Bankside has proved to be one of the most sought after schemes in the UK and we are very pleased to be taking advantage of the interest from long term investors in this project and growth in the attractiveness of London’s Southbank as a great place to live and invest”.
A representative at AMPROP said: “The joint venture is a good opportunity for AMPROP Group to venture further into the London property market. The JV will also pave the way for AMPROP Group to partner the UK’s credible developers, namely Native Land and Grosvenor Group.”
Designed by Rogers Stirk Harbour + Partners and developed by Native Land and Grosvenor, the £400m NEO Bankside development comprises 217 apartments spread across four state-of-the-art pavilions, as well as 11,000 sq ft of retail space in the heart of London’s Cultural Quarter, situated immediately adjacent to Tate Modern. The development has helped create a new prime location in the capital. It has helped further regenerate the area while strengthening the South Bank’s sense of community through new public spaces, shops and leisure facilities.