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Ritchie’s Residential Land goes off-plan in west London

Ritchie’s Residential Land goes off-plan in west London

Bruce Ritchie’s Residential Land has completed a major off-plan residential purchase in west London, after taking advantage of a lull in the Asian forward-sales market.

Backed by Canadian pension fund giant Ivanhoé Cambridge, the private rented sector (PRS) specialist has forward-purchased Chase New Homes’ scheme at Palace Wharf in Fulham at £1,250/sq ft – with the deal worth around £37m in total.

The site, near the famous River Café, has planning consent for 27 residential units, comprising five townhouses and 22 flats.

“We see that to fulfil our stock requirements we need to be buying new as well as existing [stock],” Residential Land chief executive Ritchie told Property Week. “There’s an opportunity while Asian markets cool for us to replace that Far Eastern buyer with investor money, PRS money, rather than ‘export money’.”

The deal is Ritchie’s first off-plan purchase with Ivanhoé Cambridge and comes after Ivanhoé invested in a fifth Residential Land fund in February. The new £650m fund is focused on a broader area of prime central London, and its upper price point for investment has increased from £1,500/sq ft to £1,650/sq ft.

As well as buying the Fulham scheme, Residential Land has sold a £47m residential block in Marylebone to a group of Middle Eastern investors.

Elliott House, 1 Molyneux Street, has been sold to developer Coronado – with backing from Shariah-compliant Al-Rayan bank.

Residential Land had already stripped out the building after receiving planning permission in 2012 to increase the size of the 1930s block from 28,500 sq ft to 35,500 sq ft – increasing the number of flats from 23 to 31.

Coronado will now take over the redevelopment to create the enlarged building, with Residential Land exiting at a price of £1,650 on the existing square footage.

Ritchie said it was a sign Shariah-compliant purchasers were becoming more comfortable with development.

 

Source: http://www.propertyweek.com/5075153.article?origin=PWweekly

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