Three leading construction firms have been awarded a transformative £600m contract to regenerate a historic South London site. This ambitious project at the former biscuit factory in Bermondsey will introduce over 1,600 new homes. The development will deliver a variety of amenities, promising a vibrant community life.
- McAleer & Rushe, John Sisk & Son, and McLaren Construction have been selected as the principal contractors.
- The project is set to deliver 1,624 homes, mixing market and intermediate rents, alongside expansive amenities.
- First homes anticipated to be completed by autumn 2025, with full project completion targeted for 2027.
- The complex financial backing involves a £600m debt facility funded by a global consortium of lenders.
In a significant stride forward for South London’s urban redevelopment, McAleer & Rushe, John Sisk & Son, and McLaren Construction have secured the contract to transform the derelict biscuit factory site in Bermondsey. This £600 million venture aims to construct 1,624 residential units, presenting a balanced offering of market and intermediate rental homes. The development is designed to enhance community life, including a range of amenities such as lounges, workspaces, gyms, roof terraces, and an indoor swimming pool.
The phased construction plan reveals McAleer & Rushe as the leading firm, responsible for creating two plots. These will comprise five interconnected buildings harbouring 359 homes, and a 20-storey tower with 225 homes and an accompanying office block. Speaking on behalf of the company, Director Darragh Greenan emphasised a commitment to fulfilling high standards for the community throughout the project.
John Sisk & Son will construct Block ST, featuring two impressive residential towers measuring 35 and 28 storeys high. Together, these towers will contribute 472 homes to the market-rent segment. Ger Hayes, managing director of Sisk, noted the project’s logistical challenges given its proximity to a strategic railway line, but highlighted their expertise in managing such complexities. The company plans to integrate modern construction methodologies to reduce environmental impact.
Meanwhile, McLaren’s focus will be on Building F, which includes the restoration of part of the historical Peek Frean factory. This will result in a blend of commercial spaces on lower floors, with six additional storeys housing 230 residential units above. As noted by John Butten, McLaren’s managing director for regeneration, this project is vital for local community welfare and heritage preservation.
Funding for this redevelopment has been secured through an intricate financial arrangement totalling £600 million, sourced from international banks including Standard Chartered Bank and others. The project marks a pivotal chapter for a site that has undergone extensive planning iterations and ownership changes. Greystar, the current client, has set its sights on revitalising the locale with plans nodding to both aesthetic and functional community needs. The storied past of the site reveals a journey through various development proposals, each aiming to transform its urban landscape, with the current plan gaining approval earlier this year.
The multi-faceted regeneration of the biscuit factory is poised to reshape Bermondsey’s housing landscape, backed by robust financial and strategic support.
