Barratt has bought out Galliard Homes from the redevelopment of the former home of West Ham United Football Club at Upton Park, E13.
The Boleyn Ground project has a potential end value of more than £200m.
The 8.2-acre site has planning for 842 homes, 211 of which are affordable, alongside commercial space and shops across 15 buildings. Plans include a legacy walkway, memorial garden and a statue of club legend Bobby Moore.
James Barton, partner, city and east residential development at Knight Frank, which acted for Barratt, said: “The acquisition of the Boleyn Ground represents a significant show of confidence in the residential development sector, especially at this price point.”
Prices for new-build homes are around £600 per sq ft in West Ham.
Barratt entered into an arrangement with Galliard in 2015 to bring forward the scheme together after a rocky planning process.
Alastair Baird, regional managing director at Barratt London, said it had worked closely with Galliard to secure planning permission.
He said: “We are committed to delivering a new, high quality residential neighbourhood providing much needed homes, while also preserving the footballing legacy of the Boleyn Ground.”
Galliard bought the site in February 2014.
The first plans emerged in November 2014 for 838 residential units, none of which were to be affordable.
Planning documents submitted by Savills at the time of that application said: “The financial viability assessment is submitted confidentially in support of this application and this demonstrates that it would not be viable to deliver any affordable housing as part of this scheme.”
An offer of 51 affordable homes was tabled, which was pushed back by the council, before a revised application was submitted with a recommendation for refusal by planners, providing 185 affordable homes of the 838.
Following Barratt coming on board to help with planning in October 2015, the plans were submitted again at the beginning of 2016.
Galliard has a significant number of homes under development in east London, including schemes in Shoreditch, Canary Wharf and around the Royal Docks.
In June, it submitted a section 106BA to the London Legacy Development Corporation regarding its 191-flat development in Bow, East London, which it said was in danger of stalling due to high building costs.
Galliard applied for a reduction in affordable housing payments as it said profit for the development would be an unacceptable 1.3%.
The company is still investing and last week it exchanged on an office-to-residential conversion opportunity in Romford, Essex, which could accommodate 120 homes. Construction is expected to begin this autumn.
To send feedback, e-mail alex.peace@estategzette.com or tweet @egalexpeace or @estatesgazette
