Bridges seals first deal from new property fund with Croydon regeneration development

22nd August 2016
  • Bridges and its partner HUB will develop lower-cost and affordable residential housing units at Taberner House in Croydon
  • The development will contribute to the regeneration of the Croydon area, and should support over 100 jobs
  • This is the first deal from Bridges’ Property Alternatives Fund IV, which recently held a first close on £168m, but its fourth in tandem with HUB

The latest property fund managed by Bridges Ventures (“Bridges”), the specialist sustainable and impact investor, has exchanged contracts on a deal to develop 350 lower-cost residential units, 150 affordable residential units and 13,000 sq. ft. of commercial ground floor space at Taberner House, Croydon.

Bridges Property Alternatives Fund IV, in tandem with Bridges’ long-standing joint venture partner HUB Group, has agreed to acquire a brownfield development site in an important regeneration area in Croydon. The location benefits from excellent transfer links and is only five minutes’ walk from the new Westfield/Hammerson shopping centre and leisure scheme.

Bridges believes its investment can contribute to the regeneration of Croydon and also deliver lower-cost housing to ordinary Londoners. In addition, it expects the development of Taberner House – which will incorporate energy-efficiency and sustainable features where possible – to support over 50 full-time construction jobs, as well as a further 50 jobs post-development.

The site has been acquired from the Local Authority in an off-market transaction. Completion remains subject to planning consent.

Bridges has previously collaborated with HUB on three other housing developments in the outskirts of London: on the Old Vinyl Factory site in Hayes where nearly 200 units have been pre-sold to PRS investor, Fizzy Living, at Chesterfield House in Wembley where planning has been granted for 240 units and in Abbey Wood adjacent to the Crossrail terminus.

This is the first deal for Property Alternatives Fund IV, Bridges’ fourth dedicated property fund, which recently held a first close on £168m. Like Fund III, it will invest in niche sectors, emerging locations, and value situations – with a particular focus on transactions with the potential to generate strong financial returns and societal impact through environmental refurbishment and operational improvements.

Simon Ringer, Partner and Head of Property Funds at Bridges Ventures, said:

“We are delighted to have exchanged contracts on our first deal for Fund IV. The capital’s ever-increasing population is creating a growing demand for lower-cost housing for ordinary Londoners, so developments like these have the potential to deliver strong societal impact – as well as being attractive, resilient investments. Within our property funds we are now in the process of delivering well over 1,000 lower cost units in growth locations in London.

“Our three previous collaborations with HUB have shown it’s possible to provide both vital new housing and attractive public spaces that serve the needs of the local community; we intend to draw on this experience to do the same for the people of Croydon.”

 

Notes to editors

About Bridges Ventures

Bridges Ventures LLP (“Bridges”) is a specialist fund manager focused exclusively on sustainable and impact investing – using commercial investment strategies to generate attractive financial returns alongside positive social and environmental impact. In the last 14 years, it has demonstrated that by using impact as a lens to identify and engage with investments, it is possible to deliver outstanding returns for investors and positive societal impact. The firm has now raised almost £800m across its Sustainable Growth, Property and Social Sector funds.

The Bridges Property Funds target niche real estate opportunities driven by demographic shifts and changing consumer needs in areas like healthcare, education, SME business space and affordable residential accommodation. Bridges seeks to make property investments – either directly or via joint ventures – that have the potential to make strong financial returns in addition to measurable social and environmental impact.