MGT Investment Management, alongside JV partner Lincoln Property Company, has agreed a construction loan with AIG’s Commercial Real Estate Lending business and Homes England, the Government’s housing agency, for a £138.75 million build-to-rent (BTR) loan at Station Hill in Reading.
The loan will enable the delivery of 600 BTR private and affordable homes as part of the first phase of the transformative Station Hill mixed use development, creating a vital link from the town centre through to the train station. The development will also comprise new public realm, made possible by a substantial investment of c.£50 million in the surrounding community infrastructure. The delivery of the first phase of Station Hill marks the next step in further inward investment in Reading, acting as a catalyst for the growth of the surrounding area and contributing to its drive towards city status.
Once fully delivered, Station Hill will provide up to 1,350 new homes, office accommodation for approximately 9,000 new jobs, lifestyle-led space for retail, cafes and restaurants, and a new pedestrian link and activated public realm between the station and the town centre, establishing Station Hill as a new district and destination for Reading.
With construction work on the wider Station Hill development already underway, the first homes in Phase one will be ready for occupation from the end of 2022. Work is also underway on phase two, which will comprise a 275,000 sq ft office building (‘One Station Hill’ – OSH), a new public square, and a link bridge through the development into the phase one residential community. Both phases of Station Hill will be ready for occupancy by 2024 and will offer a new front door for Reading, unlocking the town centre through level access from the train station.
Savills advised Lincoln MGT on the development loan.
Callum Thorneycroft, Managing Director at MGT Investment Management said:
“We are excited to be working with AIG and Homes England on the delivery of the first phase of the transformative regeneration that is Station Hill. Station Hill will deliver an exceptional mixed-use sustainable environment offering a true live-work location adjacent to Reading Train Station and the beginning of The Elizabeth Line. We are delighted to have chosen AIG and Homes England to work with Lincoln MGT to continue the momentum to deliver our renewed vision for Station Hill and to improve the way in which people visit, and live and work in this town. It will create a platform for Reading to attract investment and fulfil its potential as the true capital of the Southeast.”