Kier, Homes England and Cross Key Homes have formed an innovative joint venture (JV) partnership that will deliver up to 5,400 new homes over the next ten years in areas of the country with the greatest need.
The collaboration between Government and Kier Living, the residential division of Kier Group, will supply mixed-tenure housing projects in key geographical locations across England.
The first four sites to form the partnership are; The Laurels in Tipton, Meadowbank in Newcastle-under-Lyme, The Orchards in Rushwick and Chelmsley Lane in Marston Green.
John Anderson, executive director of Kier Living, said: “This joint venture is an important new milestone, bringing Homes England, Kier and Cross Keys together in an innovative industry model. It is fuelled by the shared ambition of three like-minded organisations to bring forward development activity and get more homes built, against a backdrop of housing demand continuing to outstrip supply.”
The pipeline for additional sites is strong and modelled to grow to 18 trading sites spanning the breadth of the country by the middle of 2020. Over the lifetime of the JV, the intention is to create diverse communities, with 30% of all of the homes set at affordable levels.
The JV will invest in skills and new innovations throughout the lifetime of its partnership. At least three new apprenticeships will be supported at each site and a minimum of 50% of labour will be employed from the local area, to bring maximum benefit to the communities in which they develop.
Homes England is taking a 26% equity stake in the JV and will provide up to £27m in mezzanine funding from its £3 billion Home Building Fund.