Wednesday 22 November 2017

Morgan Stanley to sell London housing land in €54m deal

The plot of land is adjacent to one already being developed by
Morgan Stanley in association with Barratt Developments. Photo: Bloomberg
The plot of land is adjacent to one already being developed by Morgan Stanley in association with Barratt Developments. Photo: Bloomberg

Jack Sidders

Morgan Stanley's real estate investing unit plans to sell a plot of land in London's Greenwich area that has approval for almost 500 homes and the city's first cruise terminal, two sources said.

The site at Enderby Wharf, which overlooks the River Thames, will be offered to buyers by broker Jones Lang LaSalle and is expected to sell for more than €54m, the people said.

They asked not to be identified because the information is private.

Morgan Stanley has already developed hundreds of homes in a venture with Barratt Developments at an adjacent site, and is selling the final plot as it seeks to return cash to investors in the fund that owns the land.

A spokesman for Morgan Stanley declined to comment.

Residential land values in London's best districts have flattened out after more than two years of declines, broker Knight Frank said in a July report. More land owners are now preparing sales after a handful of large plots were traded in the past few months, demonstrating renewed demand from developers that were shaken by tax rises and uncertainty caused by the Brexit vote.

Plans for the apartments, together with the London City Cruise Port - which will host cruise ships in central London for the first time - were cleared earlier this year after campaigners lost a legal challenge to the development.

Prices for homes on the adjacent project start at €482,000 for a one-bedroom apartment, according to Barratt's website.

The former industrial site was originally developed by the whaling company, Enderby and Sons.

It was later used to manufacture some of the first transatlantic cables and a petrol pipeline linking England and France that helped support the D-Day invasion in World War II.

(Bloomberg)

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