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Acquisition of 35 shared ownership homes, London

 

  • FAH has exchanged contracts with City Pride Limited to acquire 35 affordable homes for shared ownership at the Landmark Pinnacle tower in the London Borough of Tower Hamlets (LBTH).
  • Provision of social benefit through delivering quality affordable housing in a borough with substantial housing waiting lists.
  • Construction commenced in August 2016 with practical completion expected in June 2020.

Deal summary:

 

  • 35 shared ownership homes at Landmark Pinnacle.
  • High quality design through the appointed architects ‘Squire and Partners’.
  • Planning permission granted with signed Section 106 Agreement in place.
  • 20-year Management Lease agreed with local housing association Poplar HARCA.
  • Property due diligence and valuation commissions completed by JLL.
  • Legal due diligence completed by Norton Rose Fulbright.
  • Construction works commenced in September 2016 with practical completion expected in June 2020.
  • The proposed scheme is aligned with London Borough of Tower Hamlet’s Housing Strategy 2016-2021.

 Background

This opportunity offers the prospects of tackling the social challenge of new affordable housing delivery in one of the smallest but most densely populated London Boroughs. Tower Hamlets, is a Borough of marked contrasts which has experienced spectacular regeneration and economic growth but still has areas with high levels of deprivation. It continues to have one of the fastest growing populations in London – it is projected to grow twice as fast as the London average and three times as fast as the rest of England over the next decade.

LBTH’s Housing Strategy (2016-2021) seeks to maximise the building of affordable housing through all sources of supply. Legal ownership of these properties is restricted through ‘Section 106’ planning conditions, and investment is reliant on the Registered Provider status of FAH’s wholly owned subsidiary Funding Affordable Homes Housing Association (FAHHA).

The 75-storey Landmark Pinnacle tower is set to become the tallest residential development in London. The residences consist of a mix of studios, one, two and three-bedroom apartments along with a range of amenity spaces located on Levels 1, 27, 56 and 75. The 35 shared ownership homes, consisting of one studio apartment, 18 x 1-bed apartments, and 16 x 2-bed apartments, that form part of the Section 106 Agreement, will be located on Levels 11 to 26.

Social Delivery:

A full social assessment was independently undertaken by The Good Economy Partnership (GEP). The assessment confirms there is a sustained demand throughout the whole of London with long waiting lists for starter homes on shared ownership basis. The excellent location for public transport will allow residents to access employment opportunities across London. The conclusion is that investment in this project is recommended from a social perspective.

Summary

Although London Borough of Tower Hamlets has the largest proportion of social housing in the country, it continues to face considerable challenges in meeting the housing needs of its current and future population profile. This investment provides much needed homes to individuals or families on the Borough’s waiting list.