Related Argent and joint venture partner Invesco Real Estate have appointed the main contractor and secured the debt finance for the development of Brent Cross Town’s second Build-to-Rent (BtR) building, enabling construction of 286 new homes. Galliford Try will deliver the homes and over 17,000 sq ft of amenity and retail space, while the £97m debt financing is provided by LaSalle Investment Management, further building on the significant momentum at the £8Bn net zero park town in London.

The debt financing takes the form of a Green Loan, lending dedicated to sustainable projects, which is linked to the strong environmental credentials of the building. The building is designed to be supplied with very low carbon heating and cooling from the development’s electric district heating and cooling network, which is being delivered in partnership with Vattenfall. In addition, the building aims to deliver a measurable net gain in biodiversity and to minimise construction waste and embodied carbon through efficient off-site manufacturing. LaSalle Debt Investments’ green loan structures are compliant with the Loan Market Association’s green loan framework. The overall Brent Cross Town development is committed to reaching net zero by 2030.

The announcement demonstrates the significant progress being made at Brent Cross Town. Six buildings are now underway, the first of which will be completed from the end of 2024. In total, over 930 homes, including affordable, market sale and BtR homes are on-site along with 662 student rooms in partnership with Fusion Students. Sheffield Hallam University will open its first satellite campus outside of Yorkshire at Brent Cross Town, and a joint venture between Audley Group and Senior Living Investment Partners (Octopus Real Estate and Pension Investment Corporation) will create a retirement village with around 150 homes.

Brent Cross Town is being delivered in partnership between Related Argent and Barnet Council and will create a total of 6,700 new homes, 3 million sq ft of offices, a high street and schools surrounded by 50 acres of parks and playing fields including the new 4.5-acre Claremont Park which was completed last year. The new town will benefit from Brent Cross West station, which will be the first major new mainline station in London in more than a decade when it opens later this year, connecting with King’s Cross St Pancras in as little as 12 minutes.

The new contractor appointment and financing is part of the joint venture between Related Argent and Invesco Real Estate, the global real estate investment manager, formed at the end of 2022 to deliver £600m of Gross Development Value, including over 800 homes as well as retail by 2025.

Galliford Try, one of the UK’s leading construction groups, is already delivering the first BtR building at Brent Cross Town. Its appointment by the Related Argent and Invesco Real Estate joint venture to deliver the second BtR building comprising 286 homes, a mix of market and discount market rent homes, will bring the total number of BtR homes under construction at Brent Cross Town to 535.

All will be developed and managed by Related Argent, which has just opened a brand-new premium rental development, Author King’s Cross on the King’s Cross estate. Related Argent’s BtR portfolio draws on the established record of Related Companies, which has over 71,000 homes across the United States. Known for its outstanding customer service, Related Companies has decades of proven experience in the sector.

The 286 new homes are designed by Allies & Morrison, with interiors by Conran and Partners, and range from studio to three-bedroom apartments, with block amenities shared with the first BtR building at Brent Cross Town, including a large central lobby with 24-hour concierge, wellness hub, including a gym, fitness studios, 25m pool and sauna, work from home spaces, private dining spaces, roof top terraces, podium gardens, guest suites and a cinema.

Tom Goodall, Managing Director of Related Argent, said: “There is strong momentum behind our BtR portfolio with our first rental homes now completed at Author King’s Cross and over 1,000 BtR homes under construction. Our joint venture with Invesco Real Estate at Brent Cross Town and the financing from LaSalle Investment Management is helping meet an increasing gap in the market and addressing the city’s growing demand for high-quality rental properties in vibrant places.”

John German, Managing Director, Residential Investments at Invesco Real Estate, said: “When Invesco and Related Argent closed our Joint Venture in October 2022, we only had one build contract and one loan in place.  12 months later, we now have secured all four build contracts and the necessary loan facilities to enable the project to move forward as we had planned.  We are delighted that the Project Team achieved this key milestone which now allows the project to move forward into the delivery stage to enable these assets to be delivered into our investor’s existing BtR Portfolio of just under 1,100 units.”

Robert Fay, Director, Debt Investments at LaSalle Investment Management added: “We are very pleased to work with Related Argent and Invesco Real Estate to provide the debt financing for this project, which brings together market leaders in urban regeneration and best-in-class accommodation in a great location with strong transport links to Central London. The living sector is one of LaSalle’s highest convictions across our European lending and equity strategies. This financing is LaSalle’s 26th development loan made since 2012 and builds on our development lending track record, providing flexible, sustainable loans to high-quality sponsors.”

Bill Hocking, Chief Executive of Galliford Try, said: “We are delighted to be working once again with Related Argent on one of the most significant Build to Rent schemes in London. Our business has a strong track record in producing high-quality residential developments with the sector remaining a key focus for our Building business within our Sustainable Growth Strategy.”

Councillor Ross Houston, Deputy Leader of Barnet Council and Cabinet Member for Homes and Regeneration, said: “Barnet’s new park town has been carefully designed to meet the needs of our residents now and in the future with a range of options including social housing, private sale homes, student accommodation and homes built to rent. I welcome the progress being made on Brent Cross Town’s first new homes that are being built specifically with Barnet renters in mind.”

The BtR offering at Brent Cross Town forms a major part of Related Argent’s portfolio of over 3,000 rental homes alongside King’s Cross and Tottenham Hale. The first residents moved into its first BtR development, Author King’s Cross, in October 2023. Related Argent has plans to expand its rental portfolio beyond the 3,000 homes.