Railpen, the investment manager for the €41.5bn (£35bn) Railways Pension Scheme, has announced it has entered into a €109m (£92m) funding deal with real estate specialists Revenue + Capital and developer Fifth Capital to develop 198 build-to-rent apartments at Trocoll House in Barking.
Railpen has acquired the land from Revenue + Capital with a 50-year lease to be granted to the London Borough of Barking & Dagenham upon practical completion in 2025. The development was brokered and structured by Revenue + Capital.
The acquisition has a strong ESG focus. The delivery of the scheme, 35% of which are affordable, will help tackle the local housing shortfall. Trocoll House will provide good quality private rental accommodation and affordable housing for local people and young professionals looking to move to the area. The purchase is also subject to green lease clauses, obligating the tenant to maintain sustainable responsibilities throughout the operation and occupation of the development.
Julian Allport, Investment Manager at Railpen, commented: “We are pleased to have agreed this deal with Fifth Capital for the development of Trocoll House. The build to rent sector has been resilient throughout the pandemic, delivering strong investment returns. We look forward to being a long-term partner of Barking & Dagenham Council.”
Cllr Darren Rodwell, Leader of Barking & Dagenham Council, said: “The investment being made by Railpen for the development of Trocoll House is hugely welcomed. The proposals will deliver new, secure and affordable housing stock for the borough and help regenerate Barking town centre. Barking & Dagenham is leading the way in London on building new housing stock and we look forward to working with Railpen in the future.”
Richard Walsh, Founder of Revenue + Capital, added: “It is great to be part of such a transformative development for the town centre and one which would not have been possible without the collaborative approach shown between the teams at R+C, Railpen, Barking & Dagenham and Fifth Capital. With construction due to start this year and expected completion of 2025, this is going to help Barking & Dagenham realise its vision of regenerating the area around Barking station and this, in turn, will increase tax receipts and help improve the quality of life for local residents.”