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London Mayor launches City Hall developer initiative with £100m investment in Royal Docks
Mayor Sadiq Khan makes good on campaign promise to deliver an expanded City Hall development corporation beginning with 50% stake in Royal Docks joint venture as part of £2bn initiative on land owned by GLA Group
L ondon Mayor Sadiq Khan has launched the new City Hall Developer development arm with an £100m investment into Silvertown Partnership, which will deliver 7,000 homes in the Royal Docks. The initiative, which is supported by nearly £2bn from government grant and low-interest loans at 0.1 per cent is intended to boost the delivery of new homes.
Described as a “Singapore-style” approach to housing delivery, the move is seen as the first step in City Hall playing a more direct role in developing and delivering housing through joint ventures and innovative financing.
Khan has said that his new City Hall Developer Investment Fund will make £1.5bn available in low-cost interest loans for housing associations to accelerate the construction of new, affordable and social housing in London.
“Housing continues to be impacted by a perfect storm due to the disastrous legacy of the previous government, high interest rates, the rising cost of construction materials, the impact of the pandemic and Brexit and Building Safety Regulator delays. That is why I will continue to make tackling our housing crisis a top priority as part of my ongoing work to build a better and fairer London for all.”
“This is a new era for housebuilding in London, with City Hall investing directly in new homes, unblocking stalled sites and speeding up development”
The Mayor of London, Sadiq Khan, said: “I am delighted to be launching our groundbreaking ‘Singapore-style’ housing development arm for the capital today.
“I’m proud to be investing £100m – one of the largest investments made by any Mayor of London – to help build and deliver thousands of new, high-quality and affordable homes at Silvertown. This is a new era for housebuilding in London, with City Hall investing directly in new homes, unblocking stalled sites and speeding up development.”
The Joint venture agreement will see the GLA become a 50 per cent shareholder in The Silvertown Partnership alongside Lendlease. It also forms part of Lendlease’s conditional joint venture with the Crown Estate.
Royal Docks is a 60 acre site owned by GLA Land and Property. The Mayor plans to build more than 36,000 new homes and create 55,000 new jobs across the Royal Docks, with approximately £5bn of investment planned for the area over the next 20 years. A new pedestrian and cycle bridge, a floating park and lido form part of the future waterfront district.
The brownfield site has received public investment including £233m in Homes England infrastructure funding. Approximately £5bn of investment is planned for the 175-hectare area over the next 20 years.
Ed Mayes, Executive Director of Development for the Silvertown Partnership, said: “Today’s agreement is an important step forward for Silvertown and reflects the strength of our new partnership with the Mayor of London. This investment provides the certainty needed to unlock a complex site that has remained dormant for decades, allowing us to accelerate new homes, including affordable housing, alongside a vibrant new town centre for the Royal Docks.
“Over the past five years, the sector has faced exceptional pressures. In this context, coordinated public sector investment is a meaningful intervention that enables delivery where the market alone cannot. With this support in place, Silvertown can continue to make progress and realise its potential as a thriving new neighbourhood for east London.”
Catriona Simons, Group Chief Executive at The Guinness Partnership, said: “The Guinness Partnership welcomes the Mayor’s announcement. We are delighted to be delivering 734 much needed affordable, energy efficient homes in Newham. We have already welcomed 47 residents into the first 106 newly completed affordable homes, which will be part of this vibrant new neighbourhood, in the heart of East London. Along with partners and contractor Lendlease, we look forward to being part of Silvertown’s exciting future.”
Find out more The City Hall Developer programme is being presented through the Mayor of London Homes initiative mayoroflondonhomes.london.gov.uk/
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