Cordea Savills, on behalf of its Prime London Residential Development Fund, has acquired the first two assets in Chelsea for around £40 million (S$78.57 million).
Comprising a former college building and chapel, the sites are located between the Fulham and Kings roads. Once developed, they are “expected to provide c.65,000 sq ft of residential space, together with landscaped grounds, secure underground parking and full services”.
The international property investment manager has partnered with specialist revival developer John Hunter of Tenhurst, who lists Earls Terrace, The Bromptons, The Phillimores, Observatory Gardens and Kings Chelsea amongst his impressive track record.
“Securing these high quality developments demonstrates our ability to source, structure and execute deals with high quality development and co-investment partners,” said Patrick Carr, Director of Investment at Cordea Savills.
“We anticipate that this will enable us to secure additional equity over the coming months, providing investors with diversification across a number of developments, developers and funding strategies.”
The Fund allows investors to capitalise on the shortgage of both debt and equity in the development market. It also has a target return of 18 to 20 percent per year over a four year life.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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