Developer Quintain has struck a deal to start up the next phase of its Wembley Park site in North London.
The firm has formed a joint venture with Switzerland-based Keystone Group to deliver the next 306,000 sq ft phase of residential development at the site.
Seven buildings containing 475 homes will be built on the plot, arranged around an acre of private gardens.
The new joint venture will pay Quintain £22.7m for the plot and £9.5 m for associated infrastructure.
Two of the planned buildings, covering 93,000 sq ft and containing 143 homes, will be constructed for Quintain as private rental flats.
Quintain expects a new, strong income stream to be generated for the group from this PRS business.
In addition, Quintain’s appointment as development and project manager for the NW01 housing plot will generate fee income of £3.3m over the next three years.
The remaining development land at Wembley Park is valued at £312m. Consent is held to develop 5,000 new homes on this land, alongside 1.9m sq ft of office, leisure, retail and student development.
Maxwell James, chief executive of Quintain, said: “This joint venture unlocks value for shareholders from our largest London asset, paving the way for the delivery of more new homes at Wembley into a supply-constrained London housing market.
“Strategically, this deal enables us to establish a sustainable development programme for Wembley Park .”
Giorgio Laurenti, Chairman of Keystone Group, sad: “We are delighted to join forces with Quintain once again at Wembley Park.
“We first cemented our partnership through the successful acquisition of the Wembley student accommodation building in 2011 and are pleased to continue investing in Wembley as the area regenerates into an increasingly vibrant location.”