Network Homes and Stanhope plc have consolidated their strategic partnership by signing a new joint venture deal, with an end value of c£200m, 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 likely comprise a mix Market sale, Rental homes and affordable homes (including both 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 transformational 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, which includes Canadian pension company AIMCo, 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.
Vicky Savage, Executive Director of Development 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.”
David Camp, Chief Executive of Stanhope plc, said:
“This alliance between a major private developer like Stanhope and a leading provider of quality homes 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.
“Stanhope is building upon its expertise and experience to play a long term role in delivering reasonably priced homes with a variety of tenures in London. Our strategic partnership with Network Homes will not only enable us to deliver 550 new homes in Southall quickly and cheaply but also to combine our skills to provide much needed regeneration and high quality mixed tenure product and service across London.”
The aim is to submit a planning application in Spring 2018 and achieve a start on site in early 2019, with the development completed by mid-2021.