Mitsubishi Estate, advised by Europa Capital, the pan-European real estate investment manager, has agreed a funding package to bring forward a £250 million regeneration project adjacent to East Croydon station. The development includes two 25 storey residential buildings designed by MAKE comprising 338 residential apartments and 20,000 sq ft of commercial space. The development will deliver 118 affordable homes to Clarion Housing with all buildings being delivered by Sir Robert Mc Alpine as main contractor. Construction on site is expected to start immediately with occupation anticipated in 2023.
Yuichiro Shioda, Managing Director and CEO of Mitsubishi Estate London, said: “This acquisition continues the expansion of our UK portfolio, following the purchase of our first development in Battersea in July 2019. Utilising Europa Capital’s expertise in this sector has enabled us to invest in an area of the market that’s supported by strong fundamentals.”
Hugo Black, Partner at Europa Capital, commented: “Demand for affordably priced residential assets in London, where demand has outstripped supply for some time, remains robust despite the impact of COVID-19. The sector has held up well over the last few months and we believe that high quality, professionally managed and well serviced buildings with a range of amenities will become more attractive as more people spend more time working from home. This residential development delivers much needed regeneration and new affordable accommodation, which is suitable for young professionals who want excellent transport links into central London.”
Europa Capital has researched 20 key European cities to identify which sectors and locations are expected to see the most growth and London affordable residential is positioned very near the top of this analysis. In general, the UK has an undersupply of affordable accommodation. The investment is on behalf of a separate account, which Europa Capital manages on behalf of Mitsubishi Estate London, a UK subsidiary of Europa Capital’s principal shareholder, Mitsubishi Estate.
Since 2012, Europa Capital has acquired over 9,670 student and PRS beds across Europe with a total investment volume of €1.2 billion.
Europa Capital was advised by Cushman & Wakefield.