Construction firm Mace and housing provider Essential Living have secured a contract to build a £100m, 44-storey tower on the Newington Butts site in London’s Southwark.
The contract has been awarded as part of Mayor of London Boris Johnson’s plan to increase and accelerate the number of rental homes.
The scheme forms part of the on-going regeneration of Elephant and Castle, which also includes redevelopment of the Heygate Estate.
Designed by Rogers Stirk and Harbour architects, the tower will feature 462 units of which 206 will be used for long-term private rent, 188 will be affordable, 159 will be for shared ownership and 29 will be rental units.
The site, owned by the Greater London Authority, will also feature a new theatre space for the Southwark Playhouse, a café and shops..
Mace COO for investment David Grover said the development will help deliver the Mayor’s vision for future living in London.
"Mace is committed to helping shape sustainable cities across the UK and overseas through smarter infrastructure and better buildings," Grover said.
Peabody is the preferred affordable housing partner to provide about 159 shared ownership and 29 rental units.
Johnson said the deal represents a major step forward and expressed the hope that it will encourage other institutions to invest in developments across the capital.
"Housing, like roads and railways, are a vital part of the capital’s infrastructure. We need to build more homes in London if we want to secure the capital’s economic future and the importance of institutional investors in making this happen cannot be ignored," Johnson said.
Work on the tower is expected to start early in 2014 and finish in 2017.
Image: London Mayor Boris Johnson. Photo: Courtesy of Greater London Authority.