The HCA is providing Kickstart equity funding in return for a 20% interest in the value of the fund, as well as supporting affordable housing through its National Affordable Housing Programme. This combined investment from the HCA will enable The Berkeley Group to bring forward further phases on 10 of its developments, delivering a proposed further 922 homes for private sale along with 299 affordable homes, in addition to the properties being retained in the Fund.
The 555 new homes in the fund will be situated in developments across London, the South East and the South West, including Kingshill in Cirencester, Royal Clarence Yard in Gosport and Kidbrooke in South East London. The properties will be completed by June 2012 and in line with Berkeley Group’s Vision 2020 sustainability strategy will be built to CABE’s Building for Life Silver Standard or better.
Rob Perrins, MD of the Berkeley Group said: "The creation of the Private Rental Fund with the support of the HCA is a significant innovation for the private rented sector and will provide high quality homes for open market rent across a number of our sustainable communities. Our commitment to this initiative is made possible through our strong financial position which enables us to retain this volume of properties through the Fund and maintain an ongoing financial stake in the sustainable communities we are creating."
Perrins continued: "Core to our recently launched Vision 2020 strategy is our continued commitment to the delivery of sustainable communities. The creation of the Fund will enable us to provide customers with another choice of tenure and help meet the demand for high quality, professionally managed private rental homes within vibrant mixed-use communities."
Sir Bob Kerslake, Chief Executive of the Homes and Communities Agency said: "This is exactly the kind of landmark deal we were looking to have associated with our Private Rental Sector Initiative. We know that more people are choosing to rent and as well as accelerating the supply of new open market and affordable homes, the creation of a bulk portfolio of homes for rent could be a blueprint for long-term investment in the private rental sector in the future."
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