April 4, 2019
The Residential Land Partnership (‘RLP’), managed by Schroder Real Estate and in association with Palmer Capital/Danescroft has successfully completed the acquisition of a c. 5 acre site in Chichester for residential development.
The site was acquired as a joint venture between Palmer Capital and Danescroft and follows their recent acquisitions in Newport Pagnell (5.4 acres) and Crawley (20 acres). The purchase continues RLP’s successful strategy, which provides investors a unique opportunity to help address the undersupply of housing across the UK, whilst generating strong returns through the acquisition and repositioning of sites for residential use.
Located to the east of Chichester city centre, the site currently has outline planning permission for a c. 520 bed student scheme and is located within the 100 acre Shopwhyke Strategic Development Location which is allocated for a mixed use development comprising housing, employment uses, a neighbourhood centre/community hub and open space. Danescroft will be seeking an alternative planning consent for a substantial residential development, supported by the local planning authority.
The purchase comes shortly after the final close of RLP, which was launched in October 2017 and closed after securing commitments of c. £70m from a combination of local authority and corporate pension schemes. The fund is unlevered and is targeted to deliver a 12 – 15% IRR, net of all fees over a five year life. The site at Chichester is a welcome addition to the portfolio which comprises sites in Milton Keynes, Manchester, Surrey, Crawley and Kings Langley. The fund has £25m to deploy and is looking for additional sites particularly in the North West of England.
Chris Button, Head of Value Add REIM at Palmer Capital commented:
“We are pleased by this new acquisition and look forward to working with planners to deliver a scheme which responds to the local demand for housing.”
Danescroft Director James Trelfa added:
“As one of their most active partners, we are delighted to have concluded this third transaction with Palmer Capital’s Residential Land Partnership. Planning consent has recently been granted on our Newport Pagnell site for 77 residential units, within 6 months of unconditional purchase and we look forward to enjoying similar success in Chichester”