Stanhope and housing association Network Homes have signed a new circa £200m joint venture deal to complete around 550 homes, regenerating a large light industrial site next to Southall railway station in the Southall Housing Zone, Ealing.
The 350,000 sq ft development will comprise a mix of build to rent, market sale and around 180 homes for shared ownership and affordable rent, together with 20,000 sq ft of retail and commercial space, and flexible work space for local small businesses and start-ups. The work space is intended to increase employment opportunities for local people.
The scheme will use a combination of traditional build and modern methods of construction, with elements such as bathrooms, balconies and panelling factory-built before installation on site, reducing build time and cost.
Close to the new Southall Crossrail station and less than 10 minutes’ walk from the centre of Southall, the development in Merrick Road will act as a gateway site, helping to trigger the regeneration of Southall over the next decade, in line with Ealing Council’s aims. Several large sites nearby have been purchased by other developers.
The joint venture represents the first stage in the practical implementation of the strategic alliance between Network Homes and Stanhope to deliver innovative residential-led schemes that answer London’s need for more high-quality housing.
Network Homes and Stanhope initially signed a framework agreement in 2016 to explore opportunities in the build-to-rent sector. The construction partner for the alliance is Laing O’Rourke. Together the three companies intend to identify and build out multiple sites over the next five years.
David Gooch, commercial director at Network Homes, said: “This joint venture is an exciting opportunity to transform a large, poorly used site into high-quality housing for local people, including a range of affordable homes. Crucially, our development will help trigger the major regeneration of a key area of Southall, close to the town centre and Crossrail station.
“The development is also an important step forward in our strategic partnership with Stanhope, one of the UK’s leading developers. Together, we want to create great places and help to grow build-to-rent opportunities for Londoners and others struggling in high-priced markets.”
The partnership aims to submit a planning application in spring 2018 and achieve a start on site in early 2019, with the development completed by mid-2021.
David Camp, chief executive of Stanhope, said: “This alliance between a major private developer like Stanhope and a leading housing association like Network Homes is the only way we are going to solve London’s housing crisis, by delivering high-quality new homes cheaply and efficiently outside the conventional structures, which have failed. We need to disrupt the market to achieve the ambitious goals for new and affordable housing set by the Mayor of London and the government.
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