TFL is the first transport operator to set up its own private residential rental business. It needs to build long term rental income to plug a £700 million annual funding gap from the government.
It has identified 10 surplus sites to create a 3,000 unit residential rental business, they include Vauxhall, Kennington and Greenwich.
Its a great idea, the PRS market is very hot, they just need to find the right developer partners and get the legal structure right.
TFL will contribute the site in return for a 49 % stake in the joint venture. Having less than a 50 % stake means the JV can borrow without going onto TFL's balance sheet.
The developer partner in return for 51% of the JV will design, get planning , and develop out the units.
TFL need developers who are experienced and creative and used to complex central London sites and with great residential design concepts.
Developers have until end October to get their bids in. to TFL.