Development Securities subsidiary Cathedral Group has joined forces with Weston Homes to deliver a £85m regeneration project on the Greenwich Peninsula.
The residential-led scheme at the Telegraph Works site forms part of a larger site currently owned and operated by telecommunications company Alcatel-Lucent.
Under the deal, Weston Homes will pay an initial £19.1m for the majority of the land on which it will construct 272 homes.
The project was one of the assets acquired by Development Securities as part of the acquisition of Cathedral in May 2014, in a deal worth £27.4m.
Development Securities will make an initial profit of £9m on the land sale, with further profits to be generated on the sale of completed units.
Cathedral’s managing director Martin Wood said: “This sale and joint venture with Weston Homes will allow us to build on Cathedral’s reputation for delivering excellent residential-led schemes in the Royal Borough of Greenwich.
“Our merger with Development Securities in May has enabled the strengthening of the group’s position as a significant residential developer with a portfolio that has over 600 units under construction.”
Development Securities chief executive Michael Marx added: “Cathedral has exceeded our expectations in the added value crystallised by this transaction.
“The £9m gain realised on Telegraph Works, just one of the nine projects in their existing development portfolio, compares favourably against the total consideration of £27.4m anticipated to be paid for Cathedral.”