Weston Homes brought on board for £85m Greenwich development

Weston Homes will pay an initial £19.1m for the majority of the land on which it will build 256 apartments and 16 townhouses.

Telegraph Works forms part of a larger site that is currently owned and operated by Alcatel-Lucent, the telecommunications company that has a factory and various operational facilities across the site. The project was one of the assets acquired by Development Securities as part of the acquisition of Cathedral in May 2014.

Cathedral entered into a conditional land purchase agreement with Alcatel-Lucent in May 2013, subject to planning, to bring forward the redevelopment of Telegraph Works. Planning consent was secured in October 2014 for construction of 256 apartments and 16 townhouses as well as the refurbishment of the adjacent Alcatel-Lucent facilities.

Cathedral managing director Martin Wood said: "This sale and joint venture with Weston Homes will allow us to build on Cathedral's reputation for delivering excellent residential-led schemes in the Royal Borough of Greenwich.”

Development Securities makes an initial profit of £9m on the land sale, with further profits to be generated on sale of the completed townhouses.

Development Securities chief executive Michael Marx added: "Cathedral has exceeded our expectations in the added value crystallised by this transaction. The £9m gain realised on Telegraph Works, just one of the nine projects in their existing development portfolio, compares favourably against the total consideration of £27.4m anticipated to be paid for Cathedral."

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