The deal will see NHHG receive a £45 million loan from the Government's Get Britain Building programme for the building of 140 homes. It will add £45, or another 140 homes, of its own private rented stock into the portfolio.
The homes will be built on sites across London including Kew Bridge West in Hounslow, Marine Wharf in Lewisham and Beaufort Park in Barnet. The HCA said in a statement that the funding will also support the building of 1,129 market homes across Berkeley's sites.
NHHG will hold the homes as a private rented portfolio which can be reinvested into its core social housing business.
“The opportunity to acquire such a large number of quality homes, with support from the GLA and HCA, enables us to create a strong market rent operation at Notting Hill," said NHHG chief executive Kate Davies. "Our experienced team should make good returns on this stock, enabling us to also increase the number of affordable homes we can deliver.”
“This is exactly the type of scheme we want to see more of in the capital," said London's Deputy Mayor for land and housing Richard Blakeway. "The Mayor is working to bring increased amounts of public land forward for development and using the private rented sector to accelerate supply is a bold way to help Londoners looking for a home and boost the economy.”
“Following the overwhelming response to the £1bn Build to Rent fund and the recent ground-breaking deal with PRUPIM, this latest deal with Berkeley shows the increasing interest in investing in the private rented sector," said HCA programmes director Richard Hill.
“Through close working with the GLA I am delighted that we are able to support Notting Hill Housing Group in this innovative deal, which will help bring about the construction of more homes and create more jobs,” he said.
Berkeley is expected to complete the homes in 2015. The loan is due to be repaid by March 2018 and GLA and HCA will then exit the deal.