Wedoany.com Report-Sept. 4, Patrizia, a global real assets investment manager, has partnered with London-based real estate developer Fabrix to establish a £100 million ($133.81 million) joint venture aimed at delivering affordable and sustainable housing in London. The partnership, named Sustainable Communities London (SC London), intends to redevelop underutilized urban sites into residential projects designed to meet the diverse housing needs of the capital’s growing population.

The development will include 23 affordable homes at social rent rates.

The joint venture’s strategy includes creating alternative housing options such as purpose-built student accommodation (PBSA) and co-living spaces. An initial equity commitment of £45 million has been secured, with Patrizia overseeing the investment and Fabrix acting as development partner. The collaboration seeks to address the acute shortage of affordable housing in London while ensuring environmental and social sustainability.

SC London’s first project is the redevelopment of a vacant 1980s office complex at 182-202 Walworth Road, located in the Elephant and Castle district. The scheme will include a blend of residential, student, retail, and community-focused spaces. Plans outline the delivery of 23 homes at social rent levels, making up 35% of the total residential units, along with 283 student beds. The project will also provide 5,000 square feet of retail space, a 6,200 square foot community garden, and a 2,600 square foot community kitchen to encourage engagement and interaction among residents.

Fabrix founder and CEO Clive Nichol emphasized the vision behind the initiative: “Our collaboration with Patrizia allows us to scale our vision of reimagining urban areas to positively impact and serve society. Our development at 182-202 Walworth Road is a blueprint for how innovative, community-focused development of alternative housing sectors such as PBSA and co-living can help address London’s housing crisis while delivering significant social and environmental sustainability outcomes. Through Sustainable Communities, we look forward to unlocking the delivery of more much-needed affordable homes for London.”

In addition, the affordable housing units within the Walworth Road project will ultimately be sold to support the provision of social rent homes within the London Borough of Southwark. The broader ambition of SC London is to expand beyond student housing into co-living and other residential formats, thereby creating inclusive developments across the city.

Marleen Bekkers, fund manager of Patrizia Sustainable Communities, highlighted the long-term vision: “By partnering with Fabrix to repurpose underutilised land and assets like this one in Elephant and Castle, we can deliver high-quality homes while setting new standards for environmental and social impact in the capital.”

Through SC London, Patrizia and Fabrix aim to combine investment expertise with innovative urban design, providing sustainable and affordable housing solutions while enhancing community well-being. The venture underscores a growing focus on rethinking urban spaces to support social inclusion and environmental responsibility in London’s housing market.