Arada has expanded its UK footprint with the acquisition of a prime regeneration site in Southwark, marking its third major purchase in London in the past three months.
The 99 to 101 Newington Causeway plot, which contains two vacant buildings including a 10-storey structure with a basement, was formerly occupied by The Salvation Army UK before its relocation to Denmark Hill in 2023.
The site will be delivered by Arada London, part of the Arada Group, which will shortly seek planning consent for a hotel and its first co-living project in the capital.
Arada strengthens UK real estate hold
Located a two-minute walk from Elephant and Castle Underground Station, it offers direct access to central London via the Bakerloo and Northern lines and sits within an area that has undergone significant transformation in recent years.
The acquisition deepens Arada London’s presence in Southwark. It follows the developer’s projects at Devonshire Place, which will deliver 941 student bedrooms and 200 affordable homes, and at Blackpool Road, where the company is exploring the delivery of affordable housing and purpose-built student accommodation.
The Newington Causeway plot is identified as a development opportunity in the New Southwark Plan and benefits from more than AED20 billion of wider investment across the town centre, including the redevelopment of Elephant Park and the former shopping centre.
The developer completed the latest deal weeks after acquiring local developer Regal, now rebranded as Arada London, and purchasing an 80 per cent stake in the AED12 billion Thameside West riverside development, one of Europe’s largest regeneration schemes.
Ahmed Alkhoshaibi, Group CEO of Arada, said: “Our continued investment in the capital reflects our firm conviction in London’s long-term strength as a global real estate market. Since entering the city, we have set a clear ambition to scale our residential pipeline, and the rapid growth to over 16,000 homes underscores the capability of the Arada London team to deliver at pace and to a high standard. Newington Causeway is a well-located site in an area benefiting from sustained regeneration, and we see significant potential to bring forward a high-quality mixed-use scheme that supports Southwark’s growth.”
Arada London’s pipeline stands at more than 16,000 homes, with plans to triple this to 30,000 units within three years.
Jonathan Seal, CEO of Arada London, said: “The former Salvation Army headquarters presents a unique opportunity. This acquisition marks a major step for Arada London, as we kick off our third project in Southwark and make our debut in the co-living world. This acquisition demonstrates our approach to creating connected, vibrant neighbourhoods. With brand new homes and a hotel, we are helping shape a town centre at the heart of Southwark’s transformation.”
