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.