Developer launches affordable arm and strikes first deal with global investment firm

Adam Lawrence, chief executive of London Square, said: “The launch of Square Roots shows our commitment to providing much-needed new homes across all tenures in Greater London.

“Our partnership with Hestia has enabled the scheme to go ahead as 100% affordable homes, which is positive news for the local community and for the London Borough of Lewisham.

“The scheme will offer well-designed homes in a well-connected location, either through shared ownership or by renting to people who want to work and live in the capital.”

London Square’s previous experience in developing affordable housing includes work with large social landlords Clarion and Peabody on a number of projects in the past two years.

The group says it already has a pipeline of more than £500m of affordable housing in London and the new affordable housing arm will sit alongside the company’s three existing divisions, which focus on private sale development; public sector partners; and commercial, retail and leisure schemes.

Will Gibby, director of fund management at Federated Hermes, which has $614.8bn in assets under management, said: “Axion House fully aligns with Hestia’s strategy and our wider approach to responsible investing, enabling us to deliver a scheme that will provide affordable homes and impact positively on the environment and surrounding community.”