Places for People picked for £1.5bn Surrey joint venture
Places for People has been selected by Surrey County Council for an innovative new joint venture that could deliver development worth more than £1.5bn over the next 15 years.
The decision, expected to be ratified at a council cabinet meeting next Thursday, will see the housing association enter into a 50:50 partnership with the council that will develop more than 2,000 homes in its first phase, across 32 council-owned sites.
Surrey’s procurement process is being carried out on behalf of the pan-geography Orbis Partnership, advised by Knight Frank, which includes East Sussex County Council and Brighton & Hove. The 50:50 Limited Liability Partnership could eventually result in Places for People delivering nearly 10,000 homes.
Places for People has been selected by Surrey County Council for an innovative new joint venture that could deliver development worth more than £1.5bn over the next 15 years.
The decision, expected to be ratified at a council cabinet meeting next Thursday, will see the housing association enter into a 50:50 partnership with the council that will develop more than 2,000 homes in its first phase, across 32 council-owned sites.
Surrey’s procurement process is being carried out on behalf of the pan-geography Orbis Partnership, advised by Knight Frank, which includes East Sussex County Council and Brighton & Hove. The 50:50 Limited Liability Partnership could eventually result in Places for People delivering nearly 10,000 homes.
The decision comes as local authorities face scrutiny for their relationships with private developers, most notably in Haringey, where the council is in political disarray after deciding to appoint Lendlease as preferred partner for its £2bn Haringey Development Vehicle.
Places for People’s selection differs in that it involves the development of largely vacant land, as opposed to wholesale redevelopment of existing council housing.
Places for People, one of the UK’s largest with 153,000 units under management, was selected from a shortlist that included Taylor Wimpey, Morgan Sindall, Willmott Partnership Homes and Telereal Trillium.
The council has said that in the context of public sector cuts, it can generate new revenue schemes by using its land to create a portfolio of Build to Rent units with other residential formats using this multi-site delivery model.
It will gain access to Places for People’s planning and promotion credentials at the same time as being able to retain ownership and control of sites.
Land included in the initial package of sites includes 63 acres of vacant land in Esher, capable of delivering 900 homes, and 13.1 acres in Walton-Upon-Thames, which is earmarked for 500 residential units. A summary of data provided by participating and interested authorities has indicated a further range of more than 100 sites, with potential for more than 5,000 units.
The length of contract is for 15 years, plus the option of a five-year extension, to reflect the development cycle from feasibility to delivery including sales and marketing.
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