Funding package for Silvertown Quays announced by Homes England
Homes England has agreed funding packages totalling £309m to accelerate construction at three major London housing developments, one of which is Silvertown Quays in the Royal Docks in Newham.
The three schemes, in Brent Cross, Silvertown and Barking Riverside, have a total capacity for up to 20,000 new homes. The loan funding, from the government’s £4.5bn Home Building Fund, will enable the schemes to invest in infrastructure necessary to speed up the construction of thousands of new homes in the capital.
The Silvertown Partnership, consisting of an affiliate of Starwood Capital Group and Lendlease, will use a £105m debt facility to unlock a minimum of 3,000 new homes at Silvertown Quays. The major 62-acre brownfield development in the Royal Docks, Newham, also has planning approval for office, brand, retail and leisure space. Millennium Mills, a former mill and local landmark, will be brought back to life and a new pedestrian and cycle bridge across Royal Victoria Dock will link the site to Custom House Crossrail station to make it one of the best-connected regeneration sites of its size in London. By providing finance that will help tackle high up-front infrastructure costs, Homes England’s investment will also support the restoration of Millennium Mills and the dock walls themselves, which have previously been a barrier to development of the scheme.
This facility will support the creation of a brand-new piece of the city at a location with immense potential. By reviving the last major undeveloped site in the Royal Docks, we will be creating a superb new development with the ability to generate considerable benefits for the local community.
Graham Stark, Project Director for Silvertown Quays at Lendlease
Housing minister Christopher Pincher said: “Our commitment to get Britain building is central to the mission of this Government, which is why last month I ensured home building can restart in a way that is safe. This investment from our £4.5bn fund is a real statement of intent, delivering up to 20,000 homes, thousands of jobs, and putting in place the schools, retail and leisure spaces needed to form strong, vibrant communities.”
Gordon More, chief investments officer at Homes England, said: “Despite the unusual and challenging situation the housebuilding sector, and indeed the whole country, is currently facing, Homes England remains open for business and committed to helping our partners deliver much-needed new homes.
“By investing in projects on this scale and allowing funding to be recycled into future phases of development, we are able to support significant schemes where commercial lenders may not. This means these three major developments can invest in the infrastructure they need to deliver in these uncertain times and accelerate the delivery of new homes.”
About Silvertown Quays
Silvertown Quays is a swathe of land bordering the Royal Victoria Dock and close to Thames Barrier Park. When redevelopment of the site is complete Silvertown will provide thousands of new homes and non-residential space including commercial, brand, retail, hotel and community use. The finished scheme is also expected to generate thousands of jobs and make a key contribution to the continuing regeneration of an important part of east London.
Royal Docks Enterprise Zone
The Royal Docks Enterprise Zone is a joint project between the Mayor of London, the Mayor of Newham and the London Economic Action Partnership (LEAP). It has the potential to deliver 35,000 jobs, 4,000 new homes and more than £5 billion of inward investment by 2037/38. As London’s only Enterprise Zone, the Royal Docks has a special government designation that means new business rates in the Zone are reserved and reinvested into the area. This has enabled plans for £314 million of investment into the area over the next 5 years to revive the area as a distinctive location for business and culture.
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