Social Capital Partners is seeking a lessee and forward funder for a specialist housing development in Croydon.
The socially conscious development company intends to build 115 homes on Bensham Lane, 100% of which will be offered at affordable rents.
The Old Dairy scheme, which has a GDV of circa £40m, will be a specialist accommodation development that offers “best-in-class exemplar design and specification to meet the needs of the defined user groups which include homeless families and individuals or those at risk of homelessness”.
Social Capital Partners is looking to let the scheme to a registered affordable housing provider and on maturation of the long lease, the lessee will have the option of purchasing the scheme for a nominal value – the S106 agreement stipulates that the homes remain affordable housing in perpetuity.
Shane O’Neill, co-founder and principal of Social Capital Partners, said: “What we’re offering at The Old Dairy, which will be replicated at sites across London, is the highest quality homes let at affordable rents to those who need them most. We can deliver self-financing schemes where the asset reverts to council ownership on expiry of the lease, ensuring the council retains these homes in perpetuity.
“Given the current economic headwinds, solutions like The Old Dairy offer innovative opportunities for joint ventures and specifically councils seeking to deliver viable housing solutions to complement their S106 affordable housing and regeneration projects where the demand is circa 10,000 units per London borough in terms of waiting lists for accommodation.
“In the New London Plan, there is now a clear planning pathway for specialist housing which is aligned to the GLA capital funding guide for specialist and supported housing, making now the right time to launch this product to market and advocate for its widespread adoption to help tackle the housing crisis.”
Social Capital Partners has appointed Allsop and Colliers to secure a lessee and forward funder for The Old Dairy scheme.
Andrew Boyd, partner and head of residential transactional and living markets at Allsop, said: “Social Capital Partners has alighted on a solution that will make a tangible impact on the housing crisis in London. These new homes – built to the highest standards and as a permanently affordable solution – are a win-win for the individuals and families and registered providers, reducing the authority’s LHA costs while bringing in affordable rental income.
“Given the rise of impact investing, these affordable homes that offer regeneration opportunities to local communities will be in strong demand from institutional investors looking to deliver social benefits as well as benefitting from stable returns.”
