London property developer Avanton has launched a £500m fund to build new rental homes in the capital.
The company said the fund will be used to buy land in inner London boroughs and deliver 5,000 build-to-rent homes by 2023, in a vote of confidence in the city’s recovery after Covid.
It said that “despite the obvious challenges the property market has been extremely resilient and recovered rapidly last year after the lockdown”.
Avanton will target sites with land values of between £20m and £100m in areas including Islington, Southwark, Wandsworth, Wimbledon, Hammersmith, Lambeth, Camden and Brent.
Each development will provide between 300 to 1,000 homes.
Avanton said this morning that it has several build-to-rent projects in the pipeline, including a £250m development in Richmond and a £750m scheme in Southwark’s Old Kent Road.
Omer Weinberger, Avanton chief executive, said: “The only viable solution to London’s housing crisis and the shortage of supply of new homes in the capital is delivering multiple tenure schemes and expanding BTR, intermediate and social housing provision.
“This is why Avanton is currently undergoing a three-year expansion into the build-to-rent and mixed-tenure sectors.
“To implement this we have set aside £500m and are seeking attractive land opportunities to grow our BTR development pipeline yet further.”