11 May 2012
18 Nov 2011
01 Jul 2011
Gleeson (GLE.L), which is transforming itself into a specialist in housing regeneration, announces that its Chrysalis Consortium has signed Development and Project Agreements with Ashford Borough Council in Kent for the regeneration of the Stanhope Estate - importantly, Gleeson's first regeneration scheme in the South of England.
Pursuant to the Development Agreement, Gleeson Homes & Regeneration South will undertake the development of 442 new homes, together with a commercial centre comprising three retail units and a pub/restaurant, together valued at £50m. The development will take place on 10 sites, in four phases, over five years. The split of new homes is 70% (309 units) to be affordable (social rent and shared ownership) for sale to Moat Housing Group and 30% (133 units) for private sale.
The Project Agreement covers the refurbishment, maintenance and management of the retained dwellings and public open space, together with the creation of a new Stanhope Community Centre. Pursuant to this Agreement, whose term is 30 years, Gleeson's subsidiary, Gleeson Services, under its Powerminster brand, will provide facilities management services, valued at £23m.
Through its PFI-focused subsidiary, Gleeson Capital Solutions, Gleeson created the Chrysalis Consortium to bid for this Housing Revenue Account (HRA) PFI-funded scheme. Gleeson's partners in the Consortium are the Kent-based Moat Housing Group, delivering housing management services, and Nationwide Building Society, funding the scheme. Nationwide and Gleeson are partners in the successful regeneration project at Grove Village in South Manchester, a £103m eight year programme which was the first substantial Local Authority housing PFI, with a similar HRA structure to the Ashford PFI.
Dermot Gleeson, Chairman, stated "When considering PFI-funded regeneration schemes, our ultimate aim is to secure long-term work for Gleeson Homes & Regeneration in new build housing for sale and for Gleeson Services in installation work and maintenance, whilst securing equity returns via participation in the PFI investment. The Ashford scheme fully meets those objectives. Now that Ashford is underway, Gleeson looks forward to building on the success and high potential of its regeneration business in the North of England by involvement in further schemes throughout the country."