London-focused housebuilder Telford Homes has acquired the regeneration business of United House Development for £23m.
The group of companies has interests in four major north and east London developments with a potential gross development value of £500m.
The sites are the £200m City North in Finsbury Park, N4, the £15m Balfron Tower refurbishment in Poplar, E14, a 50% stake valued at £75m in two phases of Gallions Quarter, E6, and the £300m Chrisp Street Market in Poplar, E14.
They will add to Telford’s existing £1bn development pipeline.
The Gallions Quarter deal has not yet completed, while the Chrisp Street deal will see Telford partner with Poplar HARCA to create a new commercial and leisure area in the existing market square, commencing a seven-year build in 2017.
Poplar HARCA will retain a small stake.
One employee will transfer from United House to Telford Homes following the cash-funded acquisition.
Telford Homes chief executive Jon Di-Stefano said: “Telford Homes is one of the most respected developers in London and we are targeting significant growth over the next 10 years. The acquisition of the regeneration business of United House Developments represents an excellent opportunity to make a substantial addition to our development pipeline including longer-term strategic opportunities. The four exciting developments being acquired are in locations where housing demand remains strong and we look forward to working with the various partners already involved in the schemes. I would like to thank Rick de Blaby and everyone at United House for their assistance during the last two months and I wish them all the best in the future.”
The deal leaves United House debt free, with the firm focusing on its development projects in Soho, West Smithfield, Feltham, Swanley and Kilburn. The firm intends to focus on London projects of between 15 and 50 units, in partnership with local authorities and housing associations. It follows United House’s sale of its building contracting division through a merger with Bullock Construction in September 2014.
United House Development chief executive Rick de Blaby said: “This transaction completes a wholesale restructuring of the United House Group which started last summer when we demerged our construction business. United House Group is now in a debt-free position and liberated to develop out the balance of our portfolio, whose end value exceeds £150m, and return to our core expertise of delivering bespoke, niche London residential developments upon which we have earned a widely respected reputation. The regeneration schemes which we have nurtured and the relationships we have with our joint venture partners are hugely important and valuable to us, and given the scale of the investment they need going forward, I am confident that in Telford Homes and Jon’s team we have passed them into the best possible hands.”
