U.K. self-storage operator Safestore has sold its 3.5-acre site in Whitechapel, East London, England, for £41.1 million. The buyer was London & Quadrant (L&Q), a housing association that strives to provide quality, affordable homes. L&Q plans to develop the site for primarily residential purposes, according to the source.

The site is currently home to a 270,000-square-foot self-storage facility. Under the terms of the sale, Safestore will continue to operate its storage business until November 2015 under a leaseback from L&Q.

The self-storage sale came in £14.6 million over the April 2013 book value of £26.5 million, the source said. Developers are seeking sites in Whitechapel in anticipation of the Crossrail, the new high-frequency, high-capacity railway for London and the Southeast.

Bids were also reportedly made by U.K. house-building company Barratt and Redrow.

L&Q manages more than 66,000 homes throughout Greater London and Southeast England. The organization builds new homes and refurbishes old ones, creates affordable homes for sale, provides accommodation for key workers like nurses and hospital staff, helps people on lower incomes buy homes through shared ownership, and assists with community projects.

Owned by owned Safestore Holdings PLC, Safestore operates 135 self-storage facilities, including 98 U.K. locations and 25 facilities in France. The company also has 12 locations under management in the United Kingdom. It serves approximately 43,700 total customers and employs about 550 people.

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