London Pensions Fund Authority to back 200+ home development

The London Pensions Fund Authority is to provide 85% of the financing for a 200-home development in East London which is "to use an innovative covenant to help relieve pressure on the capital’s housing market, accelerate development and raise standards of private renting”.

Pontoon Dock in the Royal Docks area in Newham is currently a public car park and coach stand. In addition to the new homes, there will be approximately 11,000 sq. ft. of non-residential floor space.

An LPFA-backed consortium was chosen by the Greater London Authority to develop the site.

The Authority said: “Over the last decade the number of households privately renting has increased to around two million Londoners – about one in four – but the capital has few purpose-built rented schemes compared with major cities in the US or Europe.

“The provision of top quality private rent at Pontoon Dock, built alongside traditional private sale and affordable housing, will help to speed up the construction period, encourage long-term institutional investment in the residential market and improve the design, tenancy arrangements and management of the homes.”

Susan Martin, CEO of LPFA, said: “We are delighted to have been selected as the majority financial backer for this project. Investing directly in the redevelopment of the Pontoon Dock site will not only deliver essential housing for London, but will also provide LPFA with the attractive, liability matching, long-term returns we need to provide for our pensioners. ”