The collaboration between government and Kier Living – the residential arm of the Kier Group – will supply mixed-tenure housing projects in key geographical locations across England.
The initial four sites to form the partnership have been confirmed, with a number located in the West Midlands.
The first developments are:
- the Laurels in Tipton
- Meadowbank in Newcastle-under-Lyme
- the Orchards in Rushwick
- Chelmsley Lane in Marston Green
The pipeline for additional sites is strong and modelled to grow to 18 trading sites spanning the country by the middle of 2020.
The JV will invest in skills and new innovations with at least three new apprenticeships being supported at each site and a minimum of 50% of labour employed from the local area.
Homes England is taking a 26% equity stake in the JV and will provide up to £27m in mezzanine funding from its Home Building Fund.
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“Working collaboratively, we have the ability to embrace new ways of working, and to maximise our collective assets, resources and capabilities to deliver key developments that will provide new homes in areas of the country with the greatest housing need,” said John Anderson, executive director at Kier Living.
“And we will work in ways that will help to stimulate the local economy and to encourage individuals to explore a career in our industry.”
Claire Higgins, chief executive at Cross Keys Homes, said it was delighted to be embarking on another JV with Kier.
“By working together, we have been able to demonstrate the creative thinking needed to increase the supply of housing in general and, for us, affordable homes in particular.”
Nick Walkley, chief executive at Homes England, concluded: “Our innovative deal with Kier Living and Cross Keys Homes shows how we intend to form new kinds of commercial partnerships to increase housing supply, address affordability issues and generate value for the public purse.
“It’s also hugely important that the JV will promote skills, modern methods of construction and a choice of tenures to give real choice to local people.”