Thames Valley Housing (TVH) has invested £25 million (approx. €29.3 million) for a 50% stake in a brand new build for sale venture, Opal Land LLP, in partnership with Galliford Try’s residential arm, Linden Homes. Opal Land is the first Corporate Joint Venture of its kind between a Housing Association and a house builder where sites are serially added.
The partnership has bought land at the St Bernard’s School site in Langley, Slough, which has planning consent for a mixed-tenure development of 117 new homes, 40 affordable, alongside new and upgraded sports facilities for the school. The development has a GDV of circa £30 million and with work already begun on site the first phase of completions is expected to be ready in September 2013. Additionally, the partnership has bought land along the Blackfriars Road in Southwark, for which Linden Homes is seeking planning approval for a mixed-use development.
Mark Allnutt, Group Development Director at TVH, commented, “By forming a Joint Venture with Galliford Try, TVH is able to enjoy the financial benefits of outright sales in developments, whilst collaborating with a well-established company which is proficient as both a housebuilder and contractor.
The Linden Homes brand is so well known that TVH can benefit from its marketing expertise, and the partnership allows us to have access to some of the best development schemes in the South East, enabling us to make maximum returns.”
Stephen Teagle, Managing Director Affordable Housing and Regeneration at Galliford Try, added “TVH has a well-established presence in the South East, and Opal Land will allow Galliford Try to work with a wider range of Local Authorities, and also to work more closely with them, as well as increasing the number of sales outlets. This arrangement is unique in that we are not collaborating on just one site. The Joint Venture provides both TVH and Galliford Try with an incentive to look for new land opportunities and to use these to provide procurement efficiencies for both parties.”
Source: Thames Valley Housing