Brick by Brick has sold the Red Clover Gardens development in Coulsdon to Regen Capital for £38 million. This transaction will enhance housing availability in the borough, providing 85 affordable rented homes and 72 private sale/rents.
The properties, located in Lion Green Road, address the pressing need for affordable housing. By increasing the affordable rented homes from 79 to 85, the development aims to meet the high demand for housing support.
Regen Capital has acquired the freehold of the development. Meanwhile, the council will retain a long lease for the 85 affordable rented homes, sub-letting them to a housing association. This arrangement ensures that these homes remain dedicated to providing affordable housing. Croydon Council will retain 100% nomination rights, which means the council can nominate residents from its housing waiting list for the homes. This helps to provide homes for those in need while also reducing costs for temporary housing.
Regen Capital will either rent or sell the 72 private homes.
Brick by Brick was set up in 2016 to build new homes in the borough and deliver dividends to the council. Brick by Brick’s estimated losses of around £62m have contributed to the council’s general fund debt, and the council took the decision in 2021 to stop any new projects being delivered by the company.
The sale of Red Clover Gardens was the last major milestone before the council takes steps to prepare Brick by Brick for solvent liquidation, as agreed at Cabinet in February 2024.
Jane West, corporate director of resources and S151 officer at Croydon Council, said: “The council, the current team at Brick by Brick and Regen Capital have been working to get the best value for the investment in Red Clover Gardens on behalf of our residents. The sale will help to reduce the financial pressures faced by the council, while providing much needed housing in the borough.”
