Developers Patrizia and Fabrix initiate £100 million London property development venture

In a significant step towards sustainable and socially responsible urban housing projects, the Sustainable Communities London initiative has been launched. This joint venture between real assets investment manager Patrizia and London-based developer Fabrix aims to unlock the delivery of more affordable homes for London.

The £100m (€115m) initial investment will be directed towards repurposing underutilised land and assets into residential schemes with measurable social outcomes. The development will deliver 283 student beds, 23 social homes, and community infrastructure in Elephant and Castle, South London.

Once completed, the affordable housing units will be sold to and operated by a registered provider to provide the London Borough of Southwark with social rent homes. This aligns with common practice where such projects are often transferred to public or community ownership to secure their social utility.

Clive Nichol, CEO and founder of Fabrix, has expressed excitement about the collaboration with Patrizia. He believes it will help scale their vision of reimagining urban areas to positively impact society.

Patrizia plans to measure the initiative's impact by identifying nine elements of social value, including social bonds, belonging, access to facilities, safety, engagement, quality of neighbourhood, quality of home, personal growth, and healthy lifestyle.

The Sustainable Communities strategy aims to tackle housing scarcity and inequality across Ireland, the UK, Belgium, and Spain. The strategy is structured to deliver long-term value through stable rental income while meeting investor demand for strategies aligned with the UN Sustainable Development Goals.

One such initiative is the Community Kitchen, formed by local groups to connect communities and tackle social isolation. The development will also contribute to the area's continued development by providing affordable housing and integrating sustainable urban design and community-led initiatives.

The completed social housing units will be owned by a publicly affiliated entity or the public sector after completion. This ensures the continuation of the social utility of the project.

The Sustainable Communities London project marks a collaboration between Fabrix and Patrizia that signifies a commitment to creating sustainable, socially responsible, and affordable housing solutions in urban areas.

Developers Patrizia and Fabrix initiate £100 million London property development venture