Unite eyes Nine Elms resi tower

Student housing group Unite is in discussions to acquire the Belmont Tower luxury residential development in Vauxhall, SW8. The site’s private investor owner is exploring a sale to a developer which would result in a change of use from residential to student accommodation, despite the site’s allocation for residential development in the local plan. Current plans for the £300m scheme comprise 278 flats in a 36-storey tower between residential projects Vauxhall Sky Gardens and Keybridge House. London developer Alchemi bought the site in 2015 for £15.2m from K2 Properties and Network Rail on behalf of Jersey-incorporated private fund Grand South, which is  managed by Langham Hall Fund Management. The investor initially instructed CBRE to bring on a funding partner for a residential scheme, with the option of forward finance for the build or a site sale with a price tag of £50m. But since then appetite for luxury homes in Vauxhaull has weakened as the prime London market has faced a challenging combination of rising stamp duty and Brexit uncertainty. As developers turn away from residential, student accommodation in the borough is surging. Downing Developments is developing 678 bedrooms across two sites and Urbanest will operate CLS Holdings’ 454-bedroom scheme in Vauxhall Square. This is on top of a further 3,000 completed units, according to council estimates. Although student developers such as Unite are currently outbidding more cautious luxury residential investors, they may face opposition from Lambeth Council amid fears that the student market is also oversaturated. Lambeth Council has a preferred use of employment with residential on the upper floors for site with a potential location for a new primary school. A council spokesman said: “The site is subject to a site allocation in the Lambeth Local Plan under Site 11, which sets out the council’s aspirations for the site, including preferred land use.” A Unite spokesman said: “We continually review opportunities in the market that would complement our strategy of enhancing our portfolio quality and aligning with mid- and high-tariff universities, where there is strong demand for affordable, high-quality accommodation. However, we do not comment on market rumour or speculation around specific assets.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette