Kier Living has launched a new venture designed to build a thousand of homes per annum within 3 years by creating long-term housing delivery partnerships in the north of England.
The first partnership to be confirmed is between Kier and leading northern HA Together Housing Group (THG); a JV relationship which will develop mixed tenure housing projects across Yorkshire, Humber and the North West, with the first new development site, for 113 properties for outright sale in Huddersfield, West Yorkshire.
The Northern Ventures model offers a full mixed tenure development partnership, enabling registered providers with development aspirations and revenue needs to share activity, transfer risk and tap into Kier’s mixed tenure development expertise, national presence and sales infrastructure.
Unlike other partnerships, this JV is for multiple sites rather than a single-site partnership, meaning the JV can work together more collaboratively, harnessing regional expertise, investment momentum and innovation and developing a range of potential sites.
Kier Living has put in place a specialist Northern Ventures senior team, as it is expected that this approach will appeal to a wide range of land owners, from private land owners where a high output of affordable housing is required to achieve planning, through to public sector land owners who want to meet mixed tenure housing targets.
Paul Moore, managing director of Kier Living North said: “We are looking at a joint venture model that provides a longer-term sustainable relationship with a 3 -5 year business plan, giving both partners diverse and sustainable benefits.
“By working together, we can look at larger scale opportunities that are not only attractive financially for both parties, but contribute extra mixed tenure new homes to meet the current UK shortage.
“With Government focus on home ownership, the joint venture gives our partners opportunities to build housing stock of all tenures, as well as generating a commercial return on their investment that can be re-invested in the sector.”
Mark Dunford, finance director of Together Housing Group added: “THG is excited to enter into this partnership with Kier Living to ensure we continue to meet the aspirations of both the Government and our own growth strategy.
“With focus now on home ownership, we needed to work closely with an experienced developer not only to share the risk and reward but also to learn from their experience and knowledge.
“The intention is to build 500 new properties per year and establish site specific limited liability partnership for each scheme. Any profit returned to the Group will be used to fund our affordable housing programme.”