The deal marks the firm’s first foray as a major housing developer in the UK and saw it fend off rival bids from a Mace, Argent and Peabody consortium and specialist developer Grainger.
Balfour Beatty’s construction arm will deliver all building work, which is expected to generate £400m, while the group’s investment arm injects £35m over eight years, representing 50% of the equity required.
The development will be constructed in phases over eight years creating 50 apprenticeships and sustaining 350 construction jobs at peak.
The transformational project at Queen Elizabeth Olympic Park in East London is being delivered in a 50:50 joint venture with Places for People, which will manage sales and letting.
It will create two new neighbourhoods, to be called East Wick and Sweetwater, with up to 1,500 homes including 450 affordable homes, 530 homes for private sale and 500 private rented sector homes.
East Wick
- Up to 850 new homes
- Located in the north-west of the Park next to Hackney Wick and Here East
- Townhouses, mews, studios and flats
- New primary school and two new nurseries
- Floor space will consist of up to:
- 91,000sqm residential
- 9,000sqm employment space
- 5,600sqm community
- 4,700sqm retail and leisure
Sweetwater
- Up to 650 new homes
- Located in the south-west of the Park near Old Ford and the Copper Box Arena
- Studios, flats and family homes with private gardens
- New primary school and two new nurseries and a health centre
- Floor space will consist of up to:
- 67,700sqm residential
- 1,000sqm employment
- 8,400sqm community
- 2,500sqm retail
Leo Quinn, Balfour Beatty Group chief executive said: “This project marks our entry as an investor and developer into the UK’s regeneration and housing sector.
“This market is growing and offers significant opportunities for the group in the coming years.”
In total up to 6,800 homes will be built across five new neighbourhoods around the Olympic Park by 2023 – six years ahead of the original masterplan.
The Mayor of London, Boris Johnson, said: “This is the most successful and fastest growing city anywhere in Europe, and it is absolutely vital we provide thousands of new houses to allow people to live close to their places of work. I am thrilled to confirm we have now appointed high quality developers to help bring forward plans for these important new neighbourhoods on our iconic Queen Elizabeth Olympic Park, a whopping six years ahead of target.”
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