Arada continues rapid London expansion with acquisition of Salvation Army HQ in Southwark

Arada has exchanged contracts to acquire 99-101 Newington Causeway, London SE1 6BN. The 0.65-acre site comprises two buildings, including a 10-storey building with a basement, and was previously home to the Salvation Army UK and Ireland headquarters before its move to Denmark Hill in 2023.

The Salvation Army UK and Ireland Territory was advised by Savills London Development Land team.

The site will be delivered by Arada London, part of the Arada Group, who will soon be seeking planning consent to deliver a hotel and its first co-living project in the capital.

101 Newington Causeway is just a two-minute walk from Elephant & Castle Underground Station, providing excellent connections to Central London via the Bakerloo and Northern lines. This marks Arada London’s third development in the borough, following its projects at Devonshire Place delivering 941 best-in-class student bedrooms and 200 new on-site affordable homes and Blackpool Road, where the developer is currently exploring splitting the site between affordable housing and purpose-built student accommodation.

Elephant and Castle has seen substantial investment in recent years, including the redevelopment of the shopping centre and Elephant Park, bringing new homes, offices, and public spaces to the area. With more than £4 billion being invested across the town centre, the former Salvation Army UK and Ireland headquarters offers an exciting opportunity to deliver high-quality homes, amenities and jobs that will support the area’s continued growth and make a lasting contribution to the neighbourhood’s vitality.

The purchase is Arada’s third large-scale investment in the London residential market this quarter, following its purchase of local developer Regal (now Arada London) in September. Building on a 30-year track record in the capital’s real estate market, Arada London’s development pipeline stands at over 16,000 homes, supporting its ambition to reach 30,000 units over the next three years.

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.”

Jonathan Seal, CEO of Arada London said:

“The former Salvation Army UK and Ireland headquarters presents a unique opportunity in a dynamic part of London. 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. With brand new homes and a hotel, we are looking forward to helping shape a town centre at the heart of Southwark’s transformation.”

Andrew Cox, Director, Savills said:

“101 Newington Causeway is an outstanding site, which benefits from scale, transport and strong viability. This is a great acquisition for Arada, and the deal allows The Salvation Army UK and Ireland Territory to dispose of a building that is no longer suitable for its needs and to use the proceeds to continue its work.”

Peter Grant, Territorial Property Director, The Salvation Army Uk and Ireland said:

“The Salvation Army is pleased to see this site being sold for development. The provision of much needed homes alongside commercial use is a positive outcome for this site.”