LLDC primes revised £575m Stratford resi jv

The London Legacy Development Corporation has delayed bringing a luxury residential joint venture to the market, adding a broader mix of housing to attract developers. It will now bring forward Stratford Waterfront alongside the 600-home site at Bridgewater on Stratford High Street, doubling the number of homes in a £575m development opportunity. Against a backdrop of rising investor caution over Brexit and a deflated prime resi sales market, the LLDC has deferred the jv launch by six months. The development corporation had planned to begin hunting for a 50:50 jv partner for the high-end £325m Stratford Waterfront scheme this autumn, but is now aiming for March. LLDC director of development Janet Townsend said: “Stratford Waterfront is predominantly private [for-sale]. We are balancing that with the more family-orientated delivery on Bridgewater with more affordable housing. “The two won’t be competing with each other in any way because they are quite different products. This offers a better route to market and is better for housing delivery.” The LLDC expects to select a development partner before the end of 2020, with a goal to be on site by 2023 with completion around 2028. “Like everybody else we are waiting to see what happens over Brexit. We thought there would have been more progress; in March there will hopefully be more economic certainty,” said Townsend, adding: “Brexit will be uncertain for a number of years – the whole property market can’t shut down.” From luxury to family homes Stratford Waterfront has outline planning consent for 600 luxury for sale apartments, including 35% affordable housing, in four buildings of up to 27 storeys. The LLDC is also considering a shift to rental at Stratford Waterfront. Townsend said: “When selecting our development partner, we are open to discussions as to whether it is private for-sale or rental, or a combination. We think it would be attractive for a combination.”  The town centre development falls within the £1.1bn East Bank cultural hub, offering high-end apartments next to the V&A and Sadler’s Well theatre. At Bridgewater, the LLDC has inherited consent from the Legacy Community Scheme for a further 600 homes, of which 40% will be affordable. The LLDC will seek to revise the plans, but hopes to retain the large number of three-bedroom plus apartments, which currently make up 39% of the flats. “It has a much greater focus on family units and we are exploring the other typologies that we can add to make it attractive to fund,” added Townsend.  She added that the rental offering is less likely here, with more PRS planned for later down the line in future phases closer to the train station: “We are not against it; we just don’t imagine it would be quite as attractive to the market.” The new jv will see Bridgewater brought forward by several years. The scheme is part of the wider Pudding Mill Lane development, with later phases incorporating a further 900 homes and employment space. Future phases at the site will be brought to market in individual procurements. The jv will be backed by GLA equity, backed by a package of £133m grant funding for the park, with the LLDC contributing the land. It is the first time the development corporation has turned to jvs, providing a more collaboration approach, now armed with mayoral funds and a jv structure pioneered by chief executive Lyn Garner. It will bring forward its 600-home site at Bridgewater on Stratford High Street, doubling the number of homes in a £575m development opportunity. LLDC director of development Janet Townsend said: “Stratford Waterfront is predominantly private. We are balancing that with the more family-orientated delivery on Bridgewater with more affordable housing. “The two won’t be competing with each other in any way because they are quite different products. This offers a better route to market and is better for housing delivery.” From luxury to family homes Stratford Waterfront has outline planning consent for 600 luxury for sale apartments, with 35% affordable housing, in four buildings of up to 27 storeys. The LLDC is also considering a shift to rental at Stratford Waterfront. Townsend said: “When selecting our development partner, we are open to discussions as to whether it is private for-sale or rental, or a combination. We think it would be attractive for a combination.”  The town centre development falls within the £1.1bn East Bank cultural hub, offering high-end apartments next to the V&A and Sadler’s Well theatre. At Bridgewater, the LLDC has inherited consent from the Legacy Community Scheme for a further 600 homes, of which 40% will be affordable. The LLDC will seek to revise the plans, but hopes to retain the large number of three-bedroom plus apartments, which currently make up 39% of the flats. “It has a much greater focus on family units and we are exploring the other typologies that we can add to make it attractive to fund,” added Townsend. She added that the rental offering is less likely here, with more PRS planned for later down the line in future phases closer to the train station: “We are not against it; we just don’t imagine it would be quite as attractive to the market.” The new jv will see Bridgewater brought forward by several years. The scheme is part of the wider Pudding Mill Lane development, with later phases incorporating a further 900 homes and employment space. Future phases at the site will be brought to market in individual procurements. The jv will be backed by GLA equity, backed by a package of £133m grant funding for the park, with the LLDC contributing the land. It is the first time the development corporation has turned to jvs, providing a more collaboration approach, now armed with mayoral funds and a jv structure pioneered by chief executive Lyn Garner. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette