Japan-headquartered property company Mitsubishi Estate is to fund a £250 million regeneration project adjacent to East Croydon station. The project, which is being undertaken by regeneration specialist Menta, will provide two 25 storey residential buildings comprising 338 residential apartments and 20,000 sq ft of commercial space.
Construction on site is expected to start immediately with occupation anticipated in 2023.
The scheme will include 118 affordable homes for Clarion Housing.
The investment is being made on behalf of a separate account managed by Europa Capital on behalf of Mitsubishi Estate London, the UK subsidiary of Mitsubishi Estate which is Europa’s principal shareholder.
“Demand for affordably priced residential assets in London, where demand has outstripped supply for some time, remains robust despite the impact of COVID-19. The sector has held up well over the last few months and we believe that high quality, professionally managed and well serviced buildings with a range of amenities will become more attractive as more people spend more time working from home,” said Europa Capital partner Hugo Black.
Top growth prospects for affordable London residential
Europa Capital researched 20 key European cities to identify which sectors and locations are expected to see the most growth and London affordable residential is positioned very near the top of this analysis, it said.
Since 2012, Europa Capital has acquired over 9,670 student and PRS beds across Europe with a total investment volume of €1.2 billion.
Europa Capital was advised by Cushman & Wakefield. Colliers advised Menta.