The initiative aims to address London’s housing shortage by delivering social homes, student beds and community infrastructure, by repurposing underutilised land and assets.
Real assets investment manager Patrizia has partnered with London-based developer Fabrix to launch a £100m (€115m) housing platform to tackle London’s housing shortage with the aim to deliver sustainable, affordable and alternative housing in the capital.
The new venture, Sustainable Communities London, launched with an initial investment of £45m managed by Patrizia.
The project will deliver 283 student beds, 23 social homes and community infrastructure in Elephant and Castle in South London, by repurposing underutilised land and assets into residential schemes with measurable social outcomes, according to Patrizia.
Measuring impact
A spokesperson from Patrizia told Impact Investor that it plans to measure the initiative’s impact by identifying nine elements of social value that are linked to the funds’ social KPI’s to measure real outcomes for people. These target elements are: social bonds, belonging, access to facilities, safety, engagement, quality of neighbourhood, quality of home, personal growth, and healthy lifestyle.
This latest investment is part of Patrizia’s Sustainable Communities strategy which aims to tackle housing scarcity and inequality across Ireland, the UK, Belgium and Spain.
The Sustainable Communities platform is structured to deliver long-term value through stable rental income while also meeting investor demand for strategies aligned with the UN Sustainable Development Goals.
Marleen Bekkers, fund manager of Patrizia Sustainable Communities, commented: “This latest expansion of our Sustainable Communities platform demonstrates how impact-driven investment can address London’s acute housing challenges while delivering long-term value.”
London, like many major European cities, faces a chronic undersupply of key housing types needed to meet growing demand. Currently tens of thousands of families remain on social housing waiting lists, while rising rents have made homeownership increasingly out of reach due to the difficulty of saving for a deposit, Patrizia said.
The development will contribute to the area’s continued development, providing affordable housing while integrating sustainable urban design and community-led initiatives. One such initiative includes the Community Kitchen which has been formed by local groups to connect communities and tackle social isolation, according to Patrizia.
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, Patrizia added.
Clive Nichol, CEO and founder of Fabrix, said: “Our collaboration with Patrizia allows us to scale our vision of reimagining urban areas to positively impact and serve society.
“Through Sustainable Communities, we look forward to unlocking the delivery of more much-needed affordable homes for London,” Nichol added.
