L&Q has agreed to forward-fund a £70m mixed-use redevelopment in Acton.
The housing association and developer has bought the former Oaks shopping centre in Acton, west London, which will provide 178 apartments and 42,000 sq ft of retail space.
Works have already begun on the site, which is being developed by ARC – led by Reef Estates, Vfund and Express Parks – with CJ O’Shea acting as the design and build contractor.
The project will include 10 apartment blocks and 178 apartments, 22 per cent of which will be shared ownership.
Completion is due in 2018.
Jack Simmons, partner in Cushman & Wakefield’s residential team, which acted for L&Q, said: “This is an extremely complex PRS forward-funding deal in which each party used innovative solutions to bridge the funding issues relating to a truly mixed-use development.
“It is unusual for a residential developer to bridge the sectoral divide to fund retail too, but this is just the sort of open-minded thinking that is needed if we are to deliver the homes that London needs.”
Earlier this year, L&Q replaced Bellway as the Greater London Authority’s joint venture partner on the 11,000-home Barking Riverside regeneration.
The deal was struck after L&Q committed £70m towards the extension of the London Overground to a new station at Barking Riverside, which is now expected to finish in 2021.