Over the next 10 years, the partnership will supply mixed tenure housing projects for key geographical locations in England. The first four sites are to be developed in the West Midlands, an area identified as having a significant housing delivery shortfall;
• The Laurels in Tipton
• Meadowbank in Newcastle-under-Lyne
• The Orchards in Rushwick and;
• Chelmsley Lane in Marston Green.
The JV will invest in skills and new innovations throughout the lifetime of its partnership, with at least three new apprenticeships to be supported at each site and a minimum of 50% of labour employed from the local area. Homes England is also taking a 26% equity stake in the JV and will provide up to £27m in mezzanine funding from its £3 billion Home Building Fund.
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In the future, Kier states the pipeline for additional sites is strong and modelled to grow to 18 trading sites, spanning the breadth of the country by the middle of 2020. Around 30% of all homes built will also be set at 'affordable' levels.
John Anderson, Executive Director of Kier Living, said: "This joint venture is an important new milestone, bringing Homes England, Kier and Cross Keys together in an innovative industry model.
"It is fuelled by the shared ambition of three like-minded organisations to bring forward development activity and get more homes built, against a backdrop of housing demand continuing to outstrip supply.
"Working collaboratively, we have the ability to embrace new ways of working, and to maximise our collective assets, resources and capabilities to deliver key developments that will provide new homes in areas of the country with the greatest housing need. And we will work in ways that will help to stimulate the local economy and to encourage individuals to explore a career in our industry."
Nick Walkley, Chief Executive for Homes England, said: "At Homes England, we're using our finance, land and expertise to get more homes built in areas of greatest need. Our innovative deal with Kier Living and Cross Keys Homes shows how we intend to form new kinds of commercial partnerships to increase housing supply, address affordability issues and generate value for the public purse.
"It's also hugely important that the JV will promote skills, modern methods of construction and a choice of tenures to give real choice to local people."
(LM)
