Savills Operational Capital Markets (OCM) team has advised on a significant transaction in Suffolk's county town - paving the way for more than 170 new homes.
Grafton Way will deliver 163 build to rent (BTR) and 10 affordable family homes in Ipswich town centre.
Spanning 7.66 acres along the north bank of the River Orwell and situated opposite the train station, the community is expected to comprise a mix of two-bed, three-bed, and four-bed homes which together will provide almost 160,000 sq ft of housing once complete.
Aviva Investors will forward fund Galliard Homes to deliver the development which will be operated by Packaged Living. The scheme is Galliard’s debut Single Family Rental development following a series of major multifamily developments across London and Birmingham and will be its first BTR development working in partnership with Packaged Living and Aviva.
Savills advised Galliard on the transaction.
Aviva Investors, Packaged Living and Galliard Homes will place environmental credentials at the forefront of the scheme’s design, with homes using air source heat pumps for heating needs, rather than gas or electric boilers, and electric vehicle (EV) charging infrastructure to be fitted on each house. It has also stipulated homes target a minimum EPC rating of B.
This highly sustainable new community will also provide onsite commercial accommodation, thoughtfully designed public realm, with gardens, outdoor amenity space, new pedestrian river-side pathways and cycle ways for residents.
The redevelopment promises a landmark new neighbourhood for Ipswich, improving the surrounding environment and providing residents with thoughtfully designed, affordable new homes.
Galliard Homes is a leading property developer with over 30 years’ experience building homes across the UK. In recent years the business has also become synonymous with high quality BTR developments having agreed forward funding transactions with Greystar, Heimstaden and Europa amongst others – delivering over 2,000 BTR homes.
Launched in 2018, Packaged Living is a vertically integrated specialist UK BTR investor, developer and operator. The business spans the entire residential property lifecycle, including land acquisition, planning, design, development, delivery, property operations and asset management. The business is currently developing a pipeline of over 5,000 rental homes across both multifamily and single family.
Simon Welch, Director of Land at Galliard Homes, said: "Our success is not just measured by the number of houses we build, but by the quality of our partnerships. We are proud to collaborate with Aviva Investors and Packaged Living to provide 173 exceptional homes in a high-growth region of Ipswich. Our commitment to expanding the BTR market in the UK is strengthened by our ongoing partnership with these esteemed organisations."
Jonathon Ivory, Managing Director of Single Family Housing at Packaged Living, added: "Despite recent economic turbulence, our conviction levels for single family rental remain as high as ever. Indeed, if previous recessions have taught us anything, it is that rental residential performs relatively better than other real asset classes during times of economic uncertainty.
"For residents, if falling home prices and increased mortgage costs provide the push factor, then professional management and first-class specifications and sustainability credentials deliver the pull factor. Since inception, the BTR industry has preached the inflating matching qualities of this asset class. That assertion has been robustly tested this year… and I’m pleased to say is passing with flying colours.”
Polly Simpson, Head of Multifamily Development at Savills OCM, said the disposal highlights the huge demand amongst investors for BTR opportunities.
“Working with Galliard is always a pleasure, and I am thrilled to have been part of Ipswich’s first BTR development. With its market leading environmental credentials this brownfield redevelopment is set to revitalise an important part of the town centre - one for Galliard, Packaged and Savills to be proud of,” she continued.
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