CBRE Affordable Housing Fund signs deal on 184 affordable homes in Milton Keynes

News14 Jul 2022Sarah Williams

The affordable housing fund managed by a major global real assets investor has entered a forward funding deal with a UK property developer on a site in Milton Keynes.

Bletchley View will provide a mix of affordable and shared ownership properties

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The affordable housing fund managed by a major global real assets investor has entered a forward funding deal with a UK property developer on a site in Milton Keynes #UKhousing #SocialHousingFinance

CBRE Investment Management (CBRE IM), which had $146.8bn (£123bn) of assets under management as at the end of March, announced it had launched its Affordable Housing Fund (AHF) in 2019.

It has since signed a number of deals in the sector, including an agreement with association Thrive Homes to deliver 1,000 units over the next five years through a long-term risk-sharing structure.

The team has now agreed a forward funding agreement with Godwin Developments to deliver 184 affordable homes in central Bletchley, the Buckinghamshire town known for its World War II code-breaking history.

CBRE IM, which is an independently operated affiliate of commercial real estate services firm CBRE Group, said that the site will cater to a growing demand for affordable homes in the area, in particular from young people and families.

Called Bletchley View, the four-acre scheme will provide a mix of affordable and shared ownership properties, including one and two-bedroom flats, and 12 three-bedroom houses. CBRE told Social Housing that the scheme would have 74 shared ownership homes, 76 affordable rent homes and 34 “attainable market rent” homes.

The homes will be split across two buildings – one with six storeys and the other with five – and a row of town houses, and will make use of air source heat pumps and a mechanical ventilated heat recovery system. Commercial spaces will also be provided.

The value of the forward funding agreement was not disclosed. Asked who would be managing the homes, a spokesperson for CBRE said that a registered provider partner had been identified, which would be responsible for all tenures, and that commercial terms were being finalised “imminently”.

Winvic Construction has been appointed as the main contractor on the scheme, with work expected to complete in Q2 of 2024. CBRE IM was advised by Penningtons and CS2. Godwin was advised by agents CBRE and law firm Hamlins.

Andrew Davey, head of liability-aware strategies and affordable housing at CBRE IM, said: “We are particularly proud of our partnership with Godwin as it demonstrates the commitment we have to providing affordable homes where they are needed most. Our business plan proactively manages the scheme by setting rent levels and shared ownership prices to meet the specific affordability requirements of the local population.

“We look forward to working with all our partners on this development and are excited to be delivering affordable, sustainable homes to the community of Bletchley.”

Stuart Pratt, founder and development director at Godwin Developments, added: “With its proximity to Milton Keynes, the UK’s newest and fastest-growing city, Bletchley has significant potential to become a modern, thriving urban destination as outlined in the plans for its regeneration.

“We are therefore thrilled to have partnered with CBRE IM in delivering the first major new residential scheme in the area, which will ensure local and new residents have access to a range of quality affordable homes.”

Update: at 11.00am, 18.07.22

The story was updated to add in further details provided on request by CBRE around the tenure split of the new homes, and who would be managing them.