PATRIZIA and London-based real estate developer Fabrix have launched a joint venture called ‘Sustainable Communities’ London with over £100m to invest in delivering more affordable and alternative housing in London.
The platform started with £45m of client capital managed by PATRIZIA and will focus on converting unused land and buildings into new homes.
The first project is already under way in Elephant & Castle.
The joint venture aims to help with London’s shortage of affordable homes by creating new places to live for families, students and young professionals.
The first scheme at 182-202 Walworth Road will turn a redundant 1980s office building into a mixed-use development led by purpose-built student accommodation (PBSA).
It will deliver 23 affordable homes at social rent, which is 35% of the housing on site, and 283 student beds.
This could free up to 113 family homes currently used by students.
The scheme will also include 5,000 square feet of retail space, a 6,200 square foot community garden and a 2,600 square foot community kitchen.
Marleen Bekkers, fund manager of PATRIZIA Sustainable Communities, said: “This latest expansion of our Sustainable Communities platform demonstrates how impact-driven investment can address London’s acute housing challenges while delivering long-term value.
“By partnering with Fabrix to repurpose underutilised land and assets like this one in Elephant & Castle, we can deliver high-quality homes while setting new standards for environmental and social impact in the capital.”
Clive Nichol, CEO and founder of Fabrix, said: “Our collaboration with PATRIZIA allows us to scale our vision of reimagining urban areas to positively impact and serve society.
“Our development at 182-202 Walworth Road is a blueprint for how innovative, community-focused development of alternative housing sectors such as PBSA and Co-Living can help address London’s housing crisis while delivering significant social and environmental sustainability outcomes.
“Through Sustainable Communities, we look forward to unlocking the delivery of more much-needed affordable homes for London.”
