Kier has set up a new public-private partnership which aims to deliver 10,000 new homes for local authorities and housing associations.
The New Communities Partnership comprises Kier Living, the group’s housebuilding arm, Cheyne Capital and the Housing Growth Partnership. The latter is a joint venture between the Homes and Communities Agency and Lloyds Banking Group.
The alliance has £1bn of funding already in place, and plans to work with public housing providers to identify the best tenure mix for their area, and accelerate development of new homes.
The partnership describes itself as an “end-to-end development solution that includes procurement, funding, site assembly, construction, sales, management and maintenance, tailored to be as comprehensive or as focussed as each public sector client needs”.
It added: “Public sector organisations will be able to determine the appropriate mix of tenure for their site, including rental homes and homes for sale, in a model designed to meet the needs of their specific communities, without the need for grant funding.
“It will also provide public sector clients with potential scope to derive a revenue income from their land, whilst developing in a socially responsible way that will offer local apprenticeships, wider employment and sustainable, economic benefits for communities.”
Lloyds Bank will provide banking services and financing solutions to the partnership.
"Through this unique public private sector partnership with experienced finance and development partners Kier, Cheyne and the Housing Growth Partnership, we are collectively offering an end-to-end solution to building much-needed new homes,” said Shamez Alibhai, head of Cheyne’s social property impact fund.
“We believe that bringing responsible private capital into the UK housing sector is necessary for tackling the increasing shortfall of genuinely affordable homes across the country,” Alibhai added.
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