Kier’s developer arm has formed a £80m joint venture with an affordable housing investor to deliver 2,000 homes in the southeast of England.
The partnership between Kier Property and Housing Growth Partnership (HGP) is a five-year deal with a 50/50 split. It will focus on developing urban brownfield sites in “key towns”.
Sites for development will be acquired with or without full planning permission, according to the contractor, which is targeting the construction of 2,000 homes by 2027.
The local needs of neighbourhoods and communities will be taken into account during the large regeneration project, which fulfils one of Kier’s ambitions to grow in the mixed-use regeneration space.
The firm says it has already identified a number of potential sites.
Kier Property managing director Leigh Thomas said the joint venture would “significantly augment” its regeneration strategy.
HGP, which is backed by Lloyds Bank and Homes England, has previously worked with housebuilders. The latest joint venture is one of the larger transactions it is undertaking.
At the start of this year, HGP set out a target to facilitate the delivery of 5,000 homes by 2025.
HGP chief executive Vic Hepburn said the project would invest capital in areas where there was a particular shortage of housing.
In January, Morgan Sindall’s housing subsidiary, Lovell Partnerships, formed a £700m JV to build 2,800 homes in Suffolk.