Grainger shortlisted for TfL build-to-rent scheme
Grainger, the UK's largest listed residential landlord, on Thursday said it had been shortlisted as one of three companies by Transport for London (TfL) for a private rented sector partnership.
The scheme aims to deliver around 3,000 homes for rent on 10 sites around London tube stations. The selection process continues into 2019, with a decision expected in the spring, the company said.
TfL in September announced the it wanted to create properties above existing and future stations and car parks, or on vacant land.
It hired property agent Savills to find a joint-venture partner for the project. As part of any deal, the transport body would take a 49% stake and the investor 51%.
TfL is desperate to find revenue streams to address its almost £1bn debt after a government grant worth £700m was recently axed, falling passenger numbers and a partial fares freeze was introduced by Mayor Sadiq Khan.
Its woes were compounded when it emerged that the new £15.4bn Crossrail project line that runs from Essex in the east to Maidenhead in the west was over budget and delayed by at least nine months – delaying revenues.
At least 40% of the rental homes will be affordable, TfL said. It is looking to secure a partner by the end of March 2019. Subject to planning consent, it hopes to start construction by 2020-21.