Croydon office-to-resi project changes hands.

A private investor from Asia has bought a residential scheme in Croydon for £26m from Sheen Lane, React News can reveal.

Capella Court, a scheme of 86 apartments in Purley, is a recent office-to-resi project by developer Sheen Lane. The refurbishment of the office into homes was aided by a £13.7m development loan from Maslow Capital.

Formerly a 70,000 sq ft 1960s office, known locally as the Volkswagen building, the island office is on Purley Way, within a short walk of both Purley and Purley Oaks stations. Occupancy is understood to be close to 100%. Croydon has become one of London’s fastest growing residential districts, with multiple high-profile schemes under way across the borough.

Sheen Lane has delivered more than 2,300 homes across 42 residential schemes in London and the South East, with a combined gross development value in excess of £900m.

Martin Tynan, director of Sheen Lane Developments, said:

“Despite various headwinds, this sale further demonstrates the continued demand for quality, well-positioned PRS assets across Greater London.”

Jim Remfry, a partner at Clifton Agency, which acted on behalf of Sheen Lane Developments, said:

“Capella Court is an impressive former office building, which has been converted into an institutional-grade PRS asset. To see a stabilised asset of this quality come to market is rare, and we are delighted to have advised Sheen Lane on the disposal. There appears to be good interest in the PRS sectors from a wide range of investors, and we are seeing that across the various sales we are handling.”

Capella Court was sold by Clifton Agency and Allsop.