Kier Property and Housing Growth Partnership announce an £80m equity residential joint venture
Today HGP and Kier Property have announced a joint venture partnership to develop residential sites across the UK. The five-year deal, worth £80m on a 50:50 joint basis, will focus on residential developments on urban brownfield sites, initially across the South East of England.
The joint venture’s objective is to regenerate urban brownfield sites, delivering new homes connected to the needs of local towns and communities. The partnership will acquire sites with or without full planning permission and targets building 2,000 homes for sale and rental by 2027. It also evidences a strategic step-change for both Kier and HGP, with the partnership fulfilling Kier’s ambition to grow in the mixed-use regeneration space, while HGP will broaden its approach through larger transactions and strategic partnerships.
Leigh Thomas, managing director of Kier Property commented: “This partnership sits well with our five-year business plan to expand our offering in the mixed-use regeneration area. It will significantly augment our residential regeneration strategy and we have identified a number of sites that we plan to deliver through the partnership, where we can add value through the planning process.”
Rachel Miller, Investment Director at Housing Growth Partnership commented, ‘We are looking forward to working with Kier Property Development in this relationship which will see significant capital deployed to bring forward and develop an additional homes for rent and sale in areas with a shortage of supply. We will focus on urban brownfield sites and Kier share HGP’s ambition to create homes which are positive additions to existing places and communities.’
Vic Hepburn, CEO Housing Growth Partnership commented: ‘The partnership with Kier represents the next step in the expansion of HGP, so we can play as full a role as possible in supporting the UK’s diverse and evolving housing need as part of our commitment to help Britain prosper.
Kier Property is a specialist in investing, developing and managing developments in a range of sectors, building out a number of these through joint ventures.