Trocoll House, Railpen's build-to-rent development in Barking
Railpen has entered into a £92m funding deal for a new build-to-rent development in Barking.
The investment manager for the Railways Pension Scheme entered the deal with real estate specialist Revenue & Capital and developer Fifth Capital to develop 198 build-to-rent apartments at Trocoll House in Barking, 35% of which are affordable.
The development - which is due to start construction this year - was brokered and structured by Revenue & Capital while Railpen acquired the land from the firm with a 50-year lease.
The project is due to complete in 2025, when the lease will be granted to the London Borough of Barking & Dagenham.
Railpen said the acquisition has a strong ESG focus and will help tackle the local housing shortfall.
It added: "The deal will provide Railpen members with a strong economic asset that provides secure, predictable, inflation-linked cash flow, perfectly suited to a long-term income fund."
Investment manager Julian Allport said: "The build-to-rent sector has been resilient throughout the pandemic, delivering strong investment returns. We look forward to being a long-term partner of Barking & Dagenham Council."
Barking & Dagenham Council leader Darren Rodwell noted the investment being made by Railpen for the development of Trocoll House is "hugely welcomed".
"The proposals will deliver new, secure and affordable housing stock for the borough and help regenerate Barking town centre.
"The council is leading the way in London on building new housing stock and we look forward to working with Railpen in the future."
Revenue & Capital founder Richard Walsh added: "It is great to be part of such a transformative development for the town centre and one which would not have been possible without the collaborative approach shown between the teams."
