Kier forms Homes England JV to build 5,400 homes

Aaron Morby 4 years ago
Share

Kier Residential has formed a three-way joint venture with Homes England and developer Cross Keys Homes to develop 5,400 homes across the country over the next 10 years.

The partners will develop housing with a mix of tenures speeding up the development of Kier’s residential land bank through a new cash efficient approach.

This will allow Kier to increase construction to around 500 units per annum by 2020.

Under the deal Kier holds a 69% stake, with Homes England taking 26% and Cross Keys Homes 5% in the joint venture.

Kier will receive £27m for its initial contribution of four development sites, which will be financed by a loan to the JV from Homes England.

The JV partners will contribute £47m of equity funding relative to their economic ownership. A deal is also on the cards with third party lenders to inject up to £80m for the future schemes.

Haydn Mursell, chief executive of Kier, said: “This joint venture is an important milestone, bringing Homes England, Cross Keys Homes and Kier together in a new strategic partnership which will help address the national housing deficit.

“As joint venture partners, we have a shared ambition to work collaboratively to build more affordable homes across the country.” 

Nick Walkley, Chief Executive for Homes England, said: “At Homes England, we’re using our finance, land and expertise to build more homes in areas of greatest need.

“Our innovative deal with Kier and Cross Keys Homes shows how we intend to form new commercial partnerships to increase housing supply, address affordability issues and generate value for the public purse.”

 

Latest news

Kit maker Genie fined after M25 work platform death fall

Court hears how calibration error led to death of worker when 40 metre high mobile elevating work platform collapsed
2 hours ago

O’Connor Utilities sold to private equity

OCU Group reported to have fetched around £400m
24 hours ago

Rolls-Royce shortlists sites for first SMR factory

Three factories will make reactor, civils and MEP modules for SMR nuclear power stations
3 hours ago

£233m loan kick starts £3.5bn regen of Royal Docks site

Infrastructure loan paves way for 6,000-home East London Silvertown scheme
2 hours ago

Henry Construction wins £33m Oxford housing estate rebuild

Contractor signs off first deal with A2Dominion
3 hours ago

Carillion collapse hospital hit by more construction delays

Balfour will take another 18 months to complete Midland Met scheme
19 hours ago

Leeds college launches new construction and football course

Students can now combine site and tech skills with learning at a football academy
3 hours ago

Willmott Dixon blasts new Building Safety law

Rick Willmott accuses Government of scapegoating construction over its own regulatory failure
1 day ago

£550m plan to redevelop The Galleries centre in Bristol

Shopping centre building to be demolished for major mixed-use scheme
1 day ago

Costain cancels supply chain event on £260m road job

Preparation work for A1 upgrade stalls as Transport Secretary dithers over approval
1 day ago

£170m London Holborn Circus office approved

Demolition work set to start in the autumn for 10-storey office block
1 day ago

City leaders launch net zero construction skills drive

City of London leader warns "skills gap and labour shortage are threats to our net zero ambitions"
1 day ago

Marlborough Highways lands £32m Islington civils deal

Contractor to help with north London borough's green drive
1 day ago

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
4 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
4 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
4 days ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
4 days ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
4 days ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
4 days ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
5 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
5 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
5 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
5 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
5 days ago

Trio of student towers to be built at Brent Cross Town

Ground works under way with main contractor due to be appointed next month
5 days ago

Keltbray gets start date for £50m motorway upgrade

Contractor hails "significant step forward" for highways business
6 days ago

Site workers settle for 5% pay increase

Contractors and unions agree one-year deal following months of talks
7 days ago

Rising wages and skills gap to overshadow materials issues

Materials and product Inflation tops 20% so far this year, but labour set to be next big headache
6 days ago

Erith pays £2.8m bonus to staff after ownership switch

Around 450 staff have on average received over £6,000 since move to employee ownership five years ago
6 days ago

Algeco lands £19.2m Leeds modular school scheme

Offsite specialist will supply and install 192 steel frame modules
6 days ago

Contractor services