£12.7m HSBC UK Green Loan for new development by Notting Hill Genesis and Transport for London in Kidbrooke
Kidbrooke Partnership LLP – a joint venture between Notting Hill Genesis and Transport for London (TfL) – has secured a £12.7 million Green Development Loan from HSBC UK. The socially and environmentally sustainable development will deliver more than 600 new homes, along with a vibrant new village square with new shops and green walkways.
The funding, which is aligned to the Loan Market Association’s ‘Green Loan Principles’, will be used for the construction of phase one of the project, due to complete in 2023. This part of the scheme comprises 413 London Affordable Rent, shared ownership and private sale apartments. In total, 619 homes will be built as part of the scheme – with 50 per cent affordable housing.
The partnership will sustainably regenerate an underutilised four-acre brownfield site, with a new nursery, an improved transport hub and a new village square. Offering the community fresh spaces to shop and eat with a new café and convenience store. The site, which is due to complete in 2027, will also incorporate nature as part of the design with green walkways and will retain parts of the existing woodland.
The four-acre site, in the Royal Borough of Greenwich, benefits from its proximity to the Zone 3 Kidbrooke national rail station and local bus interchanges.
The sustainable regeneration of Kidbrooke Station Square will leave a lasting legacy for London and shape the city’s thinking for future developments, while also creating hundreds of new job and training opportunities in the present.
This development and partnership forms part of TfL’s wider commercial development programme and just last year, TfL was awarded a GRESB 5 Star rating and recognised as a leader by GRESB – with an overall score of 93 out a maximum of 100. GRESB is one of the leading environmental, social and governance benchmarks for real estate and infrastructure investments across the world, examining their environmental, social and governance performance. The outstanding score was in part made possible by working with development partners, such as Notting Hill Genesis, who have embraced the approach of putting sustainability at the heart of development.
Graeme Craig, Director of Commercial Development at TfL, said: “With enabling works on site close to completion, we’re excited to be starting the first phase of main works construction, working with Notting Hill Genesis, to deliver hundreds of new affordable homes, thanks to this Green Development Loan from HSBC UK. It demonstrates confidence in our approach of working with leading housing developers to use our land to create much-needed new homes with sustainability at their core, which will also generate long-term income for London’s public transport network.”
Jake Brodetsky, Joint Venture Partnerships Director at Notting Hill Genesis, said: “Our priority is always to provide quality homes and thriving communities, but we also believe protecting the environment is an integral part of a high-performing, successful organisation. Securing a green loan from HSBC UK is great news for us, our partners, our residents and the wider community alike. It’s a vindication of the huge efforts made by us and TfL to ensure our Kidbrooke project is sustainable and minimises any environmental impact.”
Hugh Taylor, Head of Housing for HSBC UK, added: “This deal gives Notting Hill Genesis and TfL the funding and confidence needed to successfully complete the delivery of their first phase of works, building 413 new homes, as the capital begins to recover from the pandemic. Once complete, the redevelopment of Kidbrooke will provide affordable homes, vital for attracting London’s first-time buyer market and to meet Greenwich’s significant housing need.”
Construction for phase one of the programme, which will commence in June 2021, is being delivered by building contractor and family-owned construction group, Ardmore.
James Byrne, Ardmore Director, said: “We are delighted to be selected by Kidbrooke Partnership LLP to deliver such an important part of their masterplan for the development of Kidbrooke Station. This is a complex project, and we have had to call on all of our skills and experience of delivering major schemes on logistically constrained sites, next to railways and local residents, to develop a practical well-considered approach to delivery. We’re looking forward to working closely with the TfL and Notting Hill Genesis to deliver the first phase of this major scheme that will help provide much needed affordable housing and transport improvements in Kidbrooke.”
Robert King, Head of Sustainable Finance at HSBC UK, concluded: “It’s crucial for housing schemes to adopt and embody sustainable development best practices to support the journey towards meeting the UK’s net zero goals. Supporting TfL and Notting Hill Genesis through the provision of innovative Sustainable Finance solutions for this exciting Kidbrooke Partnership Scheme is an important part of our commitment to help organisations thrive as the country transitions to net zero.”