The partnership will see the two groups work together over the next 18 months to identify and bring forward the development of new residential opportunities across the Capital & Regional’s shopping centre portfolio.
It will also assess where community retail and services might be added to FEC’s existing portfolio and pipeline, as well as seek new projects where the collective expertise and resources can be utilised.
This decision to team up with FEC — which is already active in the UK, with a track record in residential and mixed-use developments — is part of Capital & Regional’s strategy to reposition its assets to meet the structural changes in retail and the shift to community and sustainable ‘15-minute neighbourhoods’.
As part of its approach, the company has already taken several actions to extract value from its portfolio, including disposing of an adjoining land plot in Wood Green, north London, for residential development, and receiving planning consent for a 495-apartment BTR scheme in Walthamstow, east London.
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Lawrence Hutchings, CEO at Capital & Regional, said: “Both FEC’s and our own management team recognise the importance of sustainable mixed-use urban environments that enhance the sense of place and serve their local communities.
“The combination of our existing skills and resources will help to unlock further opportunities to create these across, and potentially beyond, our existing estate.
”We have already demonstrated that residential can play an integral role in repositioning existing retail property, especially in greater London, and are therefore pleased to formalise our relationship with FEC, having known the business well for several years.”
Chris Hoong, managing director at FEC, added: “[We have] vast experience in delivering high-density schemes in the UK and working closely with local councils and boroughs.
“We have identified two immediate potential opportunities and will work closely with Capital & Regional to explore how we might jointly deliver high quality residential properties within their London portfolio, which are already well served by existing retail amenities and transport links.
“Residential developments also provide additional clientele to retail properties and enhance existing communities, and therefore help drive income of occupiers.”