A multi-disciplinary Savills team provided advice to MGT on their c. £150 million acquisition of the remaining 92 units in Phase 3 of Battersea Power Station in an off-market transaction that was agreed during lockdown.
The apartments are all spread across three buildings on Electric Boulevard, and relate to the majority of the apartments remaining in this phase.
The investment marked the JV’s first Prime Central London (“PCL”) acquisition.
The Savills team was led by Davina Clowes from Operational Capital Markets (OCM), Otto Twist from London Residential Development and Richard Valentine-Selsey from Residential Research. The c. £150m investment required a detailed underwrite to support the Investment Committee process.
We undertook in-depth property due diligence. This process included providing detailed market advice; appraising development pipeline, affordability analysis, identifying regeneration premium, forecasting absorption as well as assessment of the likely target market to understand the true run rate cost base of the Target.
With our in-depth market knowledge we were able to provide timely, insightful and detailed advice in order to allow the JV to get a full support in their debut acquisition. Ultimately acquiring an asset that is well positioned to benefit from strong longer term fundamentals in Central London, as a prime place to live, work & visit.
This is MGT’s third significant investment in the UK residential for rent sector focused on locations with exceptional growth prospects. We are excited to be buying into the future growth of the Power Station as key facets of the transformation story come together, including the opening of the main building, Apple’s new campus and Northern Line extension which will dramatically improve connectivity.
Henry Morris, Managing Director of MGT Investment Management