Deal in excess of £70m paves the way for 178 apartments and 42,000 sq ft of prime retail space at The Oaks in Acton
The sale has been completed of the former Oaks shopping centre in Acton to L&Q, one of the UK’s largest housing associations and a leading residential developer. L&Q has completed via a forward funding agreement in excess of £70m.
Conveniently located in the heart of Acton in west London, the site will provide 178 apartments and 42,000 sq ft of prime shopping centre space.
The site is being promoted and developed by ARC Ltd – a syndicate of investors led by REEF Estates and also comprising Vfund and Express Parks Ltd – and O’Shea. With planning permission already granted, work is currently under way with completion due in 2018.
The residential element of the scheme comprises 62 one-bed, 69 two-bed, 46 three-bed and one four-bed apartments – approximately 22% of which will be shared ownership. The Oaks aims to create a new community, with apartments spread across 10 blocks wrapping round a tranquil central circulation, amenity and play space.
The entire development benefits from Acton Main Line station being on the Elizabeth Line – providing fast connections to central London.
Craig Luttman, Development Director at L&Q, commented: “L&Q have ambitious plans to develop and create one of the largest selections of purpose built rental properties in the UK and The Oaks will greatly assist us in delivering our PRS targets in such a good quality location. As a housing association we are not afraid to get creative to deliver the housing that London needs.”
Piers Slater, Development Director of REEF Estates, commented: “The Oaks will deliver much-needed housing and prime retail space to create a new community in Acton with enviable transport links.”
Jack Simmons, Partner in Cushman & Wakefield’s Residential team which acted for L&Q, commented: “This is an extremely complex PRS forward funding deal in which each party used innovative solutions to bridge the funding issues relating to a truly mixed-use development.
“It is unusual for a residential developer to bridge the sectoral divide to fund retail too, but this is just the sort of open-minded thinking that is needed if we are to deliver the homes that London needs.”
CBRE acted for the vendor.