Galliard eyes £75m Old Kent Road exit
Galliard has sounded out potential buyers for its 1,113-home landmark scheme at Cantium Retail Park on Old Kent Road, SE1, with a price tag of £75m.
The company, along with co-owner Aviva, have had conversations with developers in the area over a sale of the scheme, which received planning consent last year.
The £600m scheme comprises buildings of up to 48 storeys, with 60,900 sq ft of offices and 24,000 sq ft of retail at 520 Old Kent Road.
Galliard has sounded out potential buyers for its 1,113-home landmark scheme at Cantium Retail Park on Old Kent Road, SE1, with a price tag of £75m.
The company, along with co-owner Aviva, have had conversations with developers in the area over a sale of the scheme, which received planning consent last year.
The £600m scheme comprises buildings of up to 48 storeys, with 60,900 sq ft of offices and 24,000 sq ft of retail at 520 Old Kent Road.
The residential element includes 35.5% affordable housing by Habitable Room, with 237 social rented homes and 126 for shared ownership.
Galliard founder and executive chairman Stephen Conway said he would consider offers around £75m for the scheme. He said: “We are always ready to trade. If we can’t make substantially more money by developing it, we’d sell the site.”
Cantium Retail Park was one of the first sites on Old Kent Road to receive planning consent, offering prospective buyers a headstart with one of the first schemes to come forward in the regeneration area.
But for-sale profits are under pressure from a slowing in off-plan sales in London resi and a vast pipeline snapping at its heels.
There are around 10,000 homes planned for the Old Kent Road, with major schemes including Berkeley’s 1,300-home Malt Street, Mount Anvil and Hyde’s plans for 1,400 at New Cross Gate and more than 2,100 homes across three sites from Avanton. The opportunity area has a target to deliver 20,000 homes in the next 20 years.
Conway said: “There is a lot of supply in Old Kent Road coming through, which will mean [the pricing] will probably be below what I call base value.
“What we are seeing with those are that they take a long time to actually work through the system, particularly now you can’t sell 300 flats off-plan for delivery in three years.”
Aviva bought the site for £30.1m in 2010, and brought Galliard on board in 2017 to deliver a large residential scheme in the newly designated Mayor’s opportunity area.
Investors flocking to Old Kent Road have proposed a large number of high density schemes replacing the secondary retail parks scattered over the three mile stretch. This has been galvanised by Transport for London’s plans for the Bakerloo Line extension, with two new tube stations expected around 2030.
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