Investment company Canada Life has committed forward-funding of GBP38.1m, at a yield of 4.41%, for the first phase of Cross Quarter at Abbey Wood in south East London, a joint venture between property investor and developer Development Securities PLC and Berkshire Investment Capital, an asset management, planning and development company.
Development Securities announced on Monday that the funding, which will anchor the GBP85m mixed-use regeneration scheme at Abbey Wood, will finance the development of an 81,000 sq. ft. foodstore, which is pre-let to supermarket chain Sainsbury’s. The vacant, industrial site also has planning consent for 220 residential apartments and 5,000 sq. ft. of retail and commercial space.
Cross Quarter covers 10-acres and was acquired in April 2011. The site is adjacent to Abbey Wood station which will become the South East terminus for Crossrail in 2018.
Construction is expected to commence later this year and demolition work has already begun. The companies have targeted completion for the second quarter of 2015.
Matthew Weiner, Development Securities said: “Today’s announcement adds to the continued strong progress that we are making across our development and trading portfolio to create value through regeneration. Abbey Wood is set to significantly benefit from the arrival of Crossrail and our investment here supports our activities in suburban London locations which are well-connected and positioned for growth. This is an important milestone for Cross Quarter and we look forward to bringing the development to completion.”
Crossrail is a new high frequency, high capacity railway currently being constructed for London and the South East. It will pass through 38 stations and run for more than 100km from Maidenhead and Heathrow through new twin-bore 21 km tunnels to Shenfield and Abbey Wood. The new line is due to commence service in 2018 and is expected to increase London’s rail-based transport network capacity by 10%, supporting regeneration and cutting journey times across the city.