Croydon Council has sold the hotel at the centre of failed property plans to build-to-rent developer Amro Partners.
Croydon Park Hotel was brought to market last year with a £20m price tag as the council sought to recoup funds and fend off bankruptcy. The council bought the site for £30m in 2018 in a deal later criticised by auditors scrutinising the council’s real estate activity.
The sale of the 211-bed property and 1.54-acre site neighbouring East Croydon station follows a competitive bidding process, with Amro Partners and joint venture partner Flemyn, a family office, winning with a bid of £24m.
Amro co-founder and managing director Raj Kotecha told EG that the proximity to the station and links to London Victoria, London Bridge and Gatwick Airport were a strong draw. The building has the highest possible connectivity rating of PTAL 6b.
Croydon’s transport and availability of land for development in the city centre mean the BTR market is already well established, with operational schemes nearby from Greystar and Criterion Capital and others from Mitsubishi Estates and Europa Capital and L&G in the pipeline.
Kotecha said: “Our scheme proposal will be slightly different from some of the other assets. It will certainly be a very sustainable product and very much future-proofed from an ESG perspective.”
Amro Partners has appointed HTA Design to work up plans for a £200m scheme of 600 flats and expects to lodge a planning application in the third quarter of this year. Initial proposals include various shared amenities with roof terraces, lounge areas, co-working spaces, a gym and a cinema room.
The development will target a BREEAM Outstanding rating, Fitwel 3* certification and WiredScore Platinum. Pending planning consent, Amro aims to begin on site in spring 2023, with completion in 2025. The scheme will be managed by Amro Living.
“In terms of our site characteristics, we are able to bring something forward with a very good internal and external amenity space as well,” said Kotecha. “We have a site where we can develop scale and also provide the right level of amenity.”
The development is the third BTR project for Amro, following the Green Rooms in Manchester and the Wiltern in Ealing, west London. The first is fully let and occupied and the second secured funding from Pension Insurance Corporation and is targeting completion by the end of 2023. Last week, Amro also secured planning for its first co-living scheme, a 202-bed project at the Rex in Kingston.
Amro Partners aims to grow its portfolio to 2,500 BTR homes across London over the next five years, while also growing student accommodation in Spain and Portugal. The developer also hopes to expand its partnership with Flemyn following on from its debut deal in Croydon.
Kotecha said: “There is a fair amount of stock coming forward, not just in Croydon, but other well-connected locations. But we think the London market has the capacity to absorb a lot of build-to-rent supply.”
Savills advised Croydon Council. Newsteer is advising Amro Partners on planning.
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