Wragge & Co's real estate experts have advised be:here, a new company created by property developer Willmott Dixon, on a residential development at the Aberfeldy estate in east London. The deal is the company's first since being launched last month to focus on providing homes for the private rental sector.
The site in Tower Hamlets is set to provide 233 new homes, comprising mainly private rental accommodation alongside affordable and social housing. Under the agreement, the units will be developed by be:here and managed under the new be:here brand. The M&G Investments Secured Property Income Fund provided investment funding for the deal, demonstrating further institutional appetite for the sector.
Head of residential investment Richard Beckingsale led the Wragge & Co team advising be:here. The project is part of a wider regeneration of the Aberfeldy estate, which Willmott Dixon is carrying out in partnership with the social housing provider and owner of the estate, Poplar HARCA. Poplar HARCA will own and manage the new social housing delivered through the redevelopment and retain its estate-wide management function.
Richard Beckingsale said: "We have worked with be:here from the outset on developing its housing rental product aimed at young professionals, couples and sharers. With a clear understanding of the company's delivery model, we acted as an extension of its team to negotiate and conclude the development and funding documentation. We are pleased to have been able to support it on this significant transaction."
Matthew Pullen, managing director of be:here, added: "We are grateful for Wragge & Co's invaluable support on all aspects of this transaction - particularly its specialist tax and finance expertise and understanding of the requirements of institutional funders. Looking ahead, be:here has an ambitious business plan to develop its product in London and other major UK cities where renters demand high-quality, well-managed accommodation under a trusted brand."
The Wragge & Co team included housing and regeneration associate Sally Farrall and solicitor Daniel Leather. Tax partner Lee Nuttall and commercial development and investment partner Colin Hurt also advised. They worked closely with be:here managing director Matthew Pullen and commercial director Vinod Bhanderi. Trowers and Hamlins advised Poplar HARCA and CMS Cameron McKenna advised the M&G Investments Secured Property Income Fund.
Launched in June 2013, be:here focuses on providing accommodation for young professionals in the private rental sector. It is part of the regeneration division of Willmott Dixon – one of the UK's largest privately-owned, capital works, regeneration and support services companies. The group has an annual turnover of approximately £1 billion and employs more than 3,000 people.
Wragge & Co's 186-lawyer real estate practice offers a full service across the real estate sector. An international team, it acts for a wide range of investors, developers, major corporates, financial institutions, housing associations and local authorities.
Highlights from the past six months include advising regeneration specialist St. Modwen on a £450 million development project at Swansea University. It also supported Intu Properties plc on its £250 million acquisition of Midsummer Place Shopping Centre in Milton Keynes and St. Modwen on the £2 billion regeneration of the New Covent Garden Market in London.
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