affordablehousingnews edited by George Sell (
georgesell@mac.com)
Accord launches construction arm
Midlands RSL the Accord Group has launched its own construction arm. The 11,000-home group already has its own timber-frame factory – LoCal Homes in Walsall – and will now build the homes that it designs and manufactures. The move is expected to cut costs by reducing spending on contractors, with savings reinvested into building more homes. The new division will be headed by Mike Stockle. Its first development is a 22-home development in Wolverhampton. Stockle said: “This is a ground-breaking step for Accord Group and one that I’m very pleased to be a part of. The Bushbury development will be the first of many sites in which homes will be designed, constructed
and erected by ourselves and once complete it will provide high-quality, low-carbon homes for local people.” Chris Handy, Accord’s group chief executive, said: “We are delighted to launch our own construction team which will enable us to erect the timber-framed homes that we are manufacturing in our LoCaL Homes factory. The savings we make from doing this will also ensure that we stay ahead of increasing costs and meet the challenge of building higher- quality homes with less government grant to do so. At a time when housebuilding in the UK has slumped to a 30-year low, it’s vital that we continue to build new homes and this will help us to do that by reducing costs.”
Major RSL merger moves closer
North-east RSLs Fabrick Housing Group and Vela Group have agreed heads of terms, moving their proposed merger a major step closer to completion. They have been in talks over a potential deal to create one of the region’s largest housing associations – with a combined 32,000 homes – since November 2012. Under a combined group, all five existing subsidiaries – Housing Hartlepool, Tristar Homes, Erimus Housing, Tees Valley Housing and supported housing specialist Norcare – will operate as separate companies, retaining their present boards.
A main board is likely to be set up over the summer, comprising former Vela and Fabrick group board members.
One Housing Group secures Islamic funding
London RSL One Housing Group has secured £20m in funding from Bank of London and the Middle East (BLME), the largest Islamic bank in Europe. The three-year facility will fund the development of 68 apartments for private sale and commercial space in Hackney, east London. Six of the units will be made available for shared ownership. Martin Heys, One Housing’s group finance director,
said: “With government grants being cut we are looking at new ways to fund our development projects and to continue to build more affordable homes across London and the South East. Our new partnership with BLME is just one of the ways we plan to keep building into the future.” One Housing Group manages more than 14,000 homes across London.
Alison Thain, chief executive of Fabrick, said: “For us, it’s an opportunity to start from scratch as a brand new organisation that’s of a scale and has the focus to reflect the economic and political reality of where we are now. We are going to be big but we are going to be regional and rooted in the communities where we began.” Cath Purdy, chief executive of Vela, said: “It makes both organisations more resilient and means we can do more for Tees Valley and the wider region that we serve.”
TVH and Linden team up for ‘first of a kind’ venture
Thames Valley Housing (TVH) and Linden Homes have launched Opal Land LLP, a joint venture ‘build for sale’ initiative.
TVH has invested $25m for a 50 per cent stake in Opal Land which it described as “the first corporate joint venture of its kind between a housing association and a housebuilder where sites are serially added”. Stephen Teagle, managing director of affordable housing and regeneration at Galliford Try – Linden’s parent company – said: “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.” Mark Allnutt (right), TVH group development
director, said: “By forming a joint venture with Galliford Try, TVH is able to enjoy the financial benefits of outright sales in developments, while 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.”
Opal land has bought the St Bernard’s School site in Langley, Slough, which has planning consent for a mixed-tenure development of 117 new homes, 40 of which will be affordable, as well as upgraded sports facilities for the school. The development has a gross development value of around £30m and the first phase of completions is expected in September 2013.
Opal has also bought land on Blackfriars Road in London, where Linden Homes is seeking planning approval for a mixed-use development.
Galliford Try has also become the first volume housebuilder to register as a for-profit provider of social housing. It has registered a subsidiary called Linden First with the HCA.
Linden First will develop homes for shared ownership and shared equity and fund it by using part of the £17m Galliford Try has received from the HCA to build 1,485 affordable homes. By becoming a registered provider, it will be able to retain and manage publicly funded assets itself. Teagle said: “This gives us the flexibility to respond to policy developments,” and added that the move would enable land to be transferred in a more tax- efficient way.
showhouseMay 2013 | 99
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