Pinnacle-Pictet JV acquire £50m build to rent block from Redrow and Peabody

• 131 homes dedicated to private rental sector

• New homes are in London’s only Enterprise Zone

• The development forms part of the £314 million regeneration of the area

• Second London residential investment by Pictet Alternative Advisors

Leading UK housebuilder Redrow and one of London’s largest housing associations Peabody, have today confirmed a build to rent deal at Pontoon Reach in The Royal Docks. The deal was secured with funds managed by Pictet Alternative Advisors in joint venture with Pinnacle Investments.

The sale, which was in excess of £50 million, was managed by JLL, and will fund the delivery of 131 build to rent homes, including a mix of studio, one, two and three-bedroom apartments. The news comes at a time when the latest research from Zoopla shows the availability of rental homes in the UK is 43% below the five-year average whilst demand is up 43%

The build to rent apartments at Pontoon Reach are anticipated to be available from summer 2022 and form part of the wider regeneration of The Royal Docks. The area is London’s only Enterprise Zone and one of only 48 in the country. Part of the Government’s industrial strategy, Enterprise Zones are designated areas that provide tax breaks and other business incentives. They are engines of the UK’s economy, with 35,000 jobs and 4,000 homes forecast within The Royal Docks alone.

Jody Bryant, Head of Sales at Redrow Homes London, commented: “This build to rent deal further cements our commitment to deliver high quality homes which meet a variety of needs. The move is an exciting step forward for Pontoon Reach and the wider Royal Docks area and underpins our ambitions to create diverse and sustainable communities.

“The Royal Docks is one of the most rapidly changing areas of the Capital. The former industrial heartland has received substantial investment since it was established as an Enterprise Zone in 2013, with overall investment in the area set to reach more than £8bn by 2037, including £600m of TfL investment in the DLR network.”

James McMylor, Regional Development Director at Peabody said: “We’re committed to providing quality new affordable homes to foster sustainable and mixed communities now and into the future. This deal will create more opportunities for those wanting to rent a home at Pontoon Reach. The scheme will be a great addition to this exciting regeneration area, and we’re here for the long term, with affordable homes to rent and buy, and great open spaces for all to enjoy.”

Edward Jackson, Principal at Pictet Alternative Advisors, added “We, along with Pinnacle, are very excited to add these 131 apartments at Pontoon Reach to our growing residential platform, taking our London portfolio to over 200 units. The London rental market continues to show strong growth characteristics, owing to an acute shortage of high quality, energy efficient homes. This attractive development, in close proximity to City Airport, Canary Wharf and The City will attract residents seeking well-located, high-quality and affordable homes.”