Greenwich Peninsula deal paves way for delivery of 10,000 new homes

Developer Quintain has sold its minority stake in the Greenwich Peninsula regeneration scheme to its joint-venture partner Knight Dragon in a deal which will ensure the delivery of approximately 10,000 new homes on the 147 acre site.

Commenting on the deal, Sammy Lee, Director of Knight Dragon said:

“Greenwich Peninsula represents a unique opportunity to deliver one of the largest regeneration schemes in Europe and Knight Dragon is fully committed to delivering this landmark development for London, creating thousands of new jobs, new homes and a community where people will want to live.” “Our joint venture with Quintain has achieved a great deal over the past 16 months. We are now looking forward to building on the momentum which has been created.”

Full disclosure: Knight Dragon is a client of mine.

16 comments:

Guesty said...

Time to learn Mandarin, Mo phos!

Tj said...

What with this, and Ikea's announcement that they have applied for planning permission to open a store on the peninsular, the case for a second river crossing in the vicinity is looking imperative.

Headhunter said...

Why learn Mandarin? The Chinese are going to buy the flats not live in them...

anon said...

How this going to be a 'landmark' is unexplained. More boring flats.

Dannys1234 said...

How many of these 10'000 homes will be affordable to people who actually want to live in them themselves?

Nionios said...

The answer is very few indeed, if any. I have spent three years in the new development in Tarves Way just off Greenwich train station and I know for a fact that, given how expensive the rent is, only well-off people can live in or buy these flats. As long as even a handful of them are let, the rent is so high that it can cover the cost for the empty ones as well and owners trade on high turnovers. People move out quickly but there is often someone willing to pay through the nose...

rationalplan said...

If the rent is to high, then no one will rent it. If it is not they will. As they are brand new flats they will achieve higher rents than older buildings, overtime the rents achieved will fall unless maintenance keeps pace with the quality of new builds.


Your idea that high rents on a few units covers the costs of the empty ones does not make any sense even if the entire block of flats was owned by the same owner. The owner will get maximum returns from having rents set at the market clearing rent. Empty flats are a huge cost to carry. As a landlord you want to avoid long rental voids.


Your idea make even less sense once you realise that most of flats are owned by different people and therefore there can be no cross subsidisation.

SPPP2 said...

Flats remaining empty aren't such a big deal to Asian investors buying them as an investment. It's a way of storing cash in an asset seen as reliable. That's all it is to many - an asset. One in which they are less likely to be taxed on than in their home nation or at the mercy of their own government. Then they can sell up in 10 years, hopefully make a profit, and being non UK citizens avoid capital gains tax that UK citizens have to pay. It being occupied isn't a big factor.

Nionios said...

In fact, the entire block where I used to live was owned by one South African property developer. Having spent three years in the building and having spoken to the building's manager and neighbours on several occasions, I know for a fact that it has never been full. This is the probably the reason why the owner kept raising the rent every year by more than the inflation rate. The consequence of that decision was high turnover of tennants. I am pleased I no longer pay through the nose by living there.

Bill Whitie said...

Don't build anything in case someone foreign buys it.

Zzzzzz said...

It takes quite a while for those places to develop any sort of local life. Just like the hideous council blocks of the sixties, developers neglect any provision for a social focus. What do people around there? I guess it is for overworked and well paid suits who work in finance industry anthills over the river. Someplace to sleep?

rationalplan said...

Except that is not true. 85% of foreign owned flats are let. Some of the rest is used by family members, the rest is unoccupied.

rationalplan said...

If you rent a building out you will get void periods where no rent is coming in. I suspect the reason the kept raising the rents, was that they could as demand was outstripping supply. With London's population on the rise and low building rates, Rents have only one direction to go. The owner will charge as high as rent he can get, He won't offer a lower rent because he has all the units fully let will he?

123 booo said...

10,000 chinese owned empty flats...

Headhunter said...

Ownership of entire residential buildings by 1 investor is still relatively rare in the UK as far as I know. It's far more common in the US in cities like New York where apartment rental from major companies is relatively common. Over here, homes bought to let are still more commonly owned by individuals who may own 1 or 2 properties rather than entire buildings

Max Calò said...

So, you're saying that Asian investors don't care if an investment give either 6% or 12% return. Is this true?

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