The two developments will create 149 new homes, to be built to Level 4 of the Code for Sustainable Homes, which requires that they are 44% more energy-efficient than homes built to current building regulations.
Work will take place across two site – the former Alexandra National House site, a mixed tenure development where Lovell will build 42 homes for open market sale and 67 affordable rented properties, and a site at Shepherds Lane where 40 homes for affordable rent will be constructed.
The Alexandra National House site is due to be completed in March 2014 and the Shepherds Lane site in March 2012.
Hackney Council has agreed the development at Alexandra National House in return for Lovell investing in the broader scheme by constructing 20 Council-owned homes at the Shepherds Lane site, which will have a design and build value of approximately £3m.
Paul Smith, Chief Executive of Lovell’s parent company Morgan Sindall, said: “Housing continues to be a priority for councils across the UK and we are pleased to be able to play an important role in an innovative funding model that allows Hackney Council to unlock the value of its land portfolio.
“The mixed tenure approach the council has adopted mirrors our view of how affordable housing schemes will be delivered and we look forward to working together to deliver much-needed affordable homes in the borough.”