Canada Water is one of the largest redevelopments in London, offering the potential for thousands of new homes and other amenities. There is so much potential that Southwark Council recently committed to the project. They will obtain a flexible 20% stake in the land as a result of a new deal with British Land.
The agreement could see the delivery of as many as 3,000 new homes across the mixed-use scheme. The development will continue for the next 15 years, with pockets of land becoming available periodically. Southwark Council can choose what to do with the ones they will own. For example they can develop them, maintaining ownership or choose to sell them to other developers. There may also be some land they don’t choose to build on right away.
An innovative agreement
The deal is quite innovative due to the flexibility for both parties. It means a party will be able to opt in and out of parts of the development. As a result they can adapt to the specific situation, focus on their own objectives, and look at affordability.
Guarantees on housing
A big part of the deal is British Land have a guarantee of 35% housing in the first phase of development. More importantly a huge 70% of these homes will be for social rent. Southwark Council will have the first option to invest in the social housing. They can therefore meet targets for council homes and deliver them at acceptable rents.
Finefair is pleased to see local authorities in London looking at this kind of investment. New housing is in desperate need and innovative deals like this one can inspire other developers to do similar.
We will be on hand to provide services to any investor who needs us. For one we offer the most reliable guaranteed rent Southwark has available. We design schemes to suit various needs, adjusting the duration in particular. Rental income is secured for the entire duration of a scheme.
If you would like to find out about guaranteed rent simply contact us. We can provide information and answer any questions you may have.