Latest Old Kent Road resi schemes up for grabs
Two residential developments with a combined end value of £215m close to Old Kent Road, SE16, have hit the market.
As development ramps up in the area, CBRE and Kalmars have been instructed to sell the freehold to the 312-home consented Bermondsey Reach scheme (pictured) at 79-161 Ilderton Road, with offers invited on an unconditional basis.
Developer CB Southern secured consent from Southwark Council last year for two buildings of 13 and 28 storeys, with 312 flats and 19,569 sq ft of commercial floorspace.
Two residential developments with a combined end value of £215m close to Old Kent Road, SE16, have hit the market.
As development ramps up in the area, CBRE and Kalmars have been instructed to sell the freehold to the 312-home consented Bermondsey Reach scheme (pictured) at 79-161 Ilderton Road, with offers invited on an unconditional basis.
Developer CB Southern secured consent from Southwark Council last year for two buildings of 13 and 28 storeys, with 312 flats and 19,569 sq ft of commercial floorspace.
However, the council has responded positively to pre-application engagement for a rationalised scheme of 21 storeys and 314 homes.
Bermondsey Reach is being sold as a strong investment opportunity for the build-to-rent market, given the size of the scheme and high proportion of studios and one- and two-bedroom flats, as well as proximity to local transport hubs.
The scheme is adjacent to South Bermondsey station. It is also less than half a mile from the proposed New Bermondsey Overground station to the south.
A second £100m development opportunity at Sylvan Square offers a 219-home consented project on a 0.64-acre site at Daisy Business Park on Sylvan Grove. CBRE and Kalmars have again been instructed by the vendor.
Joseph Homes lodged plans for the scheme in 2019. Southwark granted approval last year for the 32-storey scheme, which includes 32,141 sq ft of commercial space.
The current tenure mix includes 35% affordable housing by habitable room. Subject to planning, it is being marketed as suitable for build-to-rent or student accommodation.
The site is within 500m of the planned second Old Kent Road Tube station, to the north of Old Kent Road.
The two sites are around half a mile apart. Between the two, at 227-255 Ilderton Road, food distribution business Leathams is selling a 253-home consented scheme, seeking bids in excess of £15m via Savills.
On the other side of the railway line, developer Renewal is bringing forward 3,500 homes, with BTR in the first phase, at the £2bn New Bermondsey regeneration next to Millwall Football Club’s stadium.
The Old Kent Road regeneration masterplan promises a further 20,000 homes and 10,000 new jobs for the area, with nine primary schools and a new college over the next 10-15 years.
Long-awaited development in the opportunity area has been kick-started following significant investment from both the public and private sectors.
Southwark Council recently completed the acquisition of the 2.6-acre former Toys R Us site for around £20m, to bring forward a new London Underground station with flats on top. Development will support the first leg of the extension of the Bakerloo Line, less than a mile away from Bermondsey Reach, helping to unlock an estimated 10,500 homes in the second phase of the council’s opportunity area action plan.
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