U+I has enlisted its new parent company, Landsec, as the funding partner for its mixed-use Liberty of Southwark scheme in London Bridge, SE1.
The developer, which is bringing forward the scheme as part of a joint venture with Transport for London, said it had picked the FTSE 100 REIT after a competitive bidding process.
The Liberty will provide more than 160,000 sq ft of office space, plus shops, restaurants, cafés, flexible small business workspace and new homes. It will also bring 36 flats, including 12 for social rent and a further four for discounted sale.
Landsec, which acquired U+I in December 2021, has paid £54.7m for the land, giving it 100% ownership of the Liberty. The intention is for the scheme to move into Landsec’s central London office portfolio as part of its existing Southwark pipeline, which also includes the Forge, Red Lion Court and Timber Square.
The funding deal means work to enhance Crossbones Graveyard and Memorial Garden, a unique post-medieval burial ground adjoining the site, can now move forward. The Liberty of Southwark is expected to complete in 2024.
Mike Hood, managing director of U+I, said on behalf of the jv that the deal was “a crucial step forward in realising the potential for this scheme”.
Scott Anderson, head of property development at TfL, added: “We look forward to working with our partners to deliver a sustainable and inclusive development that will have opportunities for small or medium businesses, as well as new homes and new public spaces for Southwark and London.
“This development is part of our overall portfolio strategy to create sustainable commercial income for TfL, which can be then used to reinvest in the transport network and new homes for London.”
Mark Allan, chief executive at Landsec, said: “This deal is another example of Landsec’s strategy in action, recycling capital into higher return opportunities. This is also a great first opportunity for us to fund a project in U+I’s portfolio following our acquisition of the company. We said at the time that the acquisition would allow us to accelerate our strategy, and that’s exactly what we are doing.”
U+I and TfL’s jv was advised by Gowling WLG and Savills. Landsec was advised by Pinsent Masons.
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