By Mario Marroquin
London-based real estate investor Grosvenor Group has sold the site of a master planned community in South London to the Abu Dhabi Investment Authority and Greystar.
The 15.5-acre site is located within walking distance of the Bermondsey Underground station and will be redeveloped into 1,548 rentals, 150,000 square feet of commercial space, and a secondary school, according to marketing materials from Grosvenor.
"The acquisition of Grosvenor’s Bermondsey development site represents another milestone reached in our ongoing strategy to develop thoughtfully designed and professionally-managed rental communities, particularly in light of the current shortage of high-quality rental property in the capital,” Mark Alnutt, senior managing director of Greystar Europe, said in a statement.
ADIA, Grosvenor and Greystar did not disclose the terms of the transaction for the site, which served as a biscuit manufacturing facility owned by Peek Freans.
The acquisition by Greystar and the sovereign wealth fund is a continuation of a £2.2 billion (US$2.3 billion) strategic partnership targeting multifamily in the United Kingdom they launched in December. ADIA and Greystar each made £750 million (US$865.5 million) equity commitments, while Greystar also committed a .84-acre site it purchased in Battersea in June to the venture.
Greystar also gained control of the 1,000-unit Fizzy Living rental portfolio in London from MTVH for approximately £400 million (US$461.6 million) in 2021.
ADIA has approximately US$807 billion AUM.