A fund managed by Morgan Stanley will team with U.K. homebuilder Barratt Developments Plc and construct 770 homes to revive a former London industrial site by the River Thames.
The project in the borough of Greenwich will have a gross development value of about 275 million pounds ($410 million), Barratt, the second-biggest U.K. homebuilder by market value, said in a statement today. Morgan Stanley’s real estate investing unit will also build a cruise terminal, a 250-room hotel and a commercial building on the site with developer West Properties, according to the statement.
U.K. homebuilders are developing disused sites on the banks of the Thames in east London to gain from demand for river views from workers seeking to live near the Canary Wharf and City of London financial districts. News Corp.’s News International unit, publisher of the Sun and London-based Times newspapers, sold its former headquarters in London’s Wapping district to homebuilder Berkeley Group Holdings Plc in May 2012.
The 8.9-acre (3.6-hectare) site at Greenwich is close to the O2 Arena, a concert venue that was used for the 2012 Olympic Games.
Barratt’s fiscal 2013 profit before items beat analyst estimates as government support for buyers helped the company exceed sales targets, the company said today in a separate statement. Pretax profit before taxes and one-time items was about 192 million pounds in the 12 months through June, the company said.