Galliard plots £100m Nine Elms Park resi spree
London’s largest private residential developer Galliard is plotting a bid on the final sites at Royal Mail’s consented Nine Elms Park scheme in Vauxhall, SW8.
Founder and chairman Stephen Conway told EG that the developer will make a £100m offer for the final three residential plots – E, F and G – comprising 800 homes.
Conway said: “We will be trying to buy the last three sites at Nine Elms, bidding circa £100m.
London’s largest private residential developer Galliard is plotting a bid on the final sites at Royal Mail’s consented Nine Elms Park scheme in Vauxhall, SW8.
Founder and chairman Stephen Conway told EG that the developer will make a £100m offer for the final three residential plots – E, F and G – comprising 800 homes.
Conway said: “We will be trying to buy the last three sites at Nine Elms, bidding circa £100m.
“Everyone thought Nine Elms was going to be a massive oversupply [of homes], but it is not. The location has taken over and the prices have dropped. We think Nine Elms will sell for sub £1,000 a foot.”
The bid follows Galliard’s £25m acquisition of plot C, which has planning for 262 flats, a year ago. It subsequently forward sold the £130m scheme to Mitsubishi Estate London and fund manager Europa Capital, in the Japanese investor’s London build-to-rent debut.
Conway said: “Mitsubishi funded that, so we didn’t need any capital. We sold that at a price that was good value for Europa and we made a profit.”
But he admitted new acquisitions will face competition from funds chasing space for BTR.
“We are probably in competition with lots of people who won’t be using their own money and we won’t overpay,” said Conway. “But we are an uncomplicated purchaser – when we say we are going to buy, we offer to pay cash, quickly.”
The former sorting office site spans 14 acres, of which 8.35 acres has been split into seven plots and has had outline planning permission from Wandsworth Council since March 2012.
Royal Mail has been selling the site plot by plot through Savills, after attempts to sell the entire scheme to Ballymore in 2015 fell through.
Other buyers at the site include Greystar and Henderson Park, which acquired 894 flats (plots B and D) to be built by Telford Homes, for £105.5m.
Royal Mail has opted to swap plans for plot A in favour of 200,000 sq ft of offices, leaving just E, F and G for residential development.
The bid comes as Galliard Homes doubles down on zone one residential development opportunities in anticipation of a rebound in the market.
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