Peabody and Hill strike £116m deal with build-to-rent operator as part of 3,500-home Dagenham scheme

A joint venture business owned by Hill Group and Peabody has struck a £116m deal with a build-to-rent operator to deliver 360 homes as part of a 3,500-home scheme.

Under the deal Goodstone Living will forward purchase the homes, which will be built on the former Ford stamping plant site in Dagenham, east London.

The homes will be built as part of the first, 935-home phase of Dagenham Green, delivered by the Hill Group and Peabody joint venture.

Peabody’s wider masterplan for the 45-acre Dagenham Green site includes 3,500 homes, an urban park, a lake, children’s play areas, community gardens, and other green spaces along with a new secondary school and a medical centre,.

A spokesperson for the firms said the deal “highlights Hill’s expanding footprint in this market and Peabody’s aspirations to do more BTR as part of its mixed tenure, mixed-use approach to sustainable place-making and regeneration”.

The project is Goodstone Living’s third development on behalf of an investment vehicle backed by Macquarie Asset Management and the Northern Local Government Pension Scheme. The vehicle has around 1,300 build-to-rent homes under construction across Edinburgh, Birmingham and London

Andy Hill OBE, founder and group chief Executive of The Hill Group, commented: “We are delighted to agree this significant Build to Rent deal in partnership with Goodstone, as we actively seek to grow our rental pipeline.”

James McMylor, managing director, London North at Peabody, said: “We’re pleased to see the first phase of our Dagenham Green masterplan coming to fruition, reflecting our approach to sustainable regeneration and inclusive growth.”