Aberdeen Standard Investments has agreed to fund a £50 million new rental homes development in east London’s Barking, the fund manager said on Wednesday.
The investor has bought a former sports centre in Barking town centre from Barking and Dagenham council. Property developer Lindhill will work on creating 170 apartments there, of which 60 will be affordable.
It marks the latest build-to-rent deal for Aberdeen, which last month invested in a Stratford site. Property investors have been increasingly ploughing money into the sector in the UK. More people, particularly in London where it can be very tough to get on the housing ladder, are looking to rent homes for longer.
Aberdeen Standard Investments’ Robert McDonnell said the firm is continuing to look for “well designed schemes in vibrant locations to provide high quality rental accommodation at levels that can be afforded by the local market”.
Adam Burney at Knight Frank, who advised the buyer, said: “We continue to see high levels of interest for purpose built rental assets in London despite Covid-19." He said investment into build to rent "continues to provide a solution for the housing market - delivering much needed accommodation for Londoners".
Construction on the site, where a cinema and office for Care City – a healthcare innovation and research consultancy- are also planned, is expected to complete in the third quarter of 2022.
Councillor Darren Rodwell, leader of Barking and Dagenham Council, said the development will “provide a huge additional boost to the town centre, with affordable housing and, crucially, a new base for Care City to improve health services for our elderly residents”.
