One of London’s biggest rental housing schemes is set to be developed on the site of the historic EMI vinyl pressing plant after a deal between HUB and Fizzy Living in Hayes, west London.
Fizzy Living is to forward fund the Material Store, a 189-home build to rent scheme which is part of the Old Vinyl Factory, where some records by David Bowie and The Beatles were pressed.
It is being delivered by HUB, a developer of mid-market London homes, in partnership with Bridges Ventures, a social impact investor.
Newground Architects designed the brick-clad scheme, which consists of four residential blocks arranged around a raised shared courtyard garden space.
The Material Store is HUB’s second purpose-built private rental development after Victoria Square in Acton. The 152-flat development was forwarded funded by M&G Real Estate and was the first build to rent scheme to be forward funded by a UK institution.
It also pioneered a discount market rent (DMR) offer – creating a private sector solution to affordable housing.
HUB, which focuses on delivering mid-market housing for rent and sale to hard-working Londoners, also has active sites in the Royal Victoria Docks and Wembley.
The Material Store is located within the Old Vinyl Factory, a 17-acre regeneration project in Hayes set across EMI’s former estate. Once finished, it will create a new community with more than 630 homes and 750,000 sq. ft. of commercial and leisure space – including offices, a museum, restaurants, shops and bars.
Benefitting from the planned Crossrail connection at Hayes and Harlington station, the Old Vinyl Factory master plan was granted planning consent by the Hillingdon council on 19th April 2013, and is expected to generate 4,000 new jobs by 2022.
In addition to the Material Store, HUB is responsible for delivering the Boiler House, a 54-unit scheme aimed at the open sale market that will sit next to the Material Store within the Old Vinyl Factory masterplan.
The forward funding of Material Store by Fizzy Living is one of the largest PRS deals over the last year. Around £50bn will be invested into Build to Rent over the next five years according to Knight Frank. The acquisition will be Fizzy’s eighth and will bring Fizzy’s total to 1000 units, putting it well on track to reach its target of 5000 units in 5 years.
Savills advised Fizzy on the deal. HUB was not advised. City law firm Addleshaw Goddard helped structure the deal.
Steve Sanham, development director at HUB, said:
"London faces not only a shortage of homes for sale, but homes for rent too. This is our second major forward-funding build to rent scheme that will create long-standing benefits for the area and for Londoners looking to access high quality housing that is accessible to regular people. HUB’s commitment is very much to creating mid-priced homes that set new standards for the local area, and we are delighted to be bringing the Material Store forward for development."
Harry Downes, chief executive at Fizzy Living, said:
"We’re delighted to be working with HUB to regenerate an historic and culturally significant part of west London. We share their commitments to creating well-designed, high-quality homes for hard-working Londoners. And we hope to offer renters not just high quality homes but a high level of customer service to help reinvent their experience of renting in London."
Simon Ringer, partner and head of property funds at Bridges Ventures, said:
"As a social impact investor we are committed to delivering projects which enhance both the local economy and delivery benefits to the community. Our partnership with HUB is focused on great design and on creating mid-priced housing that is sensitive to the local area and the needs of local people. The private rented sector is the fastest growing tenure of housing in the UK and with a third of Londoners renting, these vital homes will play a crucial role in supporting the regeneration of Hayes."
Chris Cartwright, partner at Addleshaw Goddard, said:
"The delivery of mid-market housing in London remains one of the biggest opportunities in the property market. The regeneration of areas like Hayes underpins the wide-reaching benefits we’re seeing from Crossrail and this deal underscores the sizeable investments build to rent can create for vital new homes in the capital."