Balfour Beatty to build 1,500 new homes in east London
UK listed construction firm Balfour Beatty signed an agreement Monday to build up to 1,500 homes at the Queen Elizabeth Olympic Park in East London.
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The deal with the London Legacy Development Corporation will see Balfour invest and construct the new East Wick and Sweetwater housing development project in East London.
The project is being delivered through a joint venture with Places for People (PfP) with the aim to create two new neighbourhoods, East Wick and Sweetwater. The development will contain up to 1,500 homes including 450 affordable homes, 530 homes for private sale and 500 private rented sector homes.
East Wick will have up to 850 homes including townhouses, mews, studios and flats and a new nursery and Sweetwater will have up to 650 homes and will include studios, apartments and family homes with private gardens, a new nursery, library and a health centre. Both communities will have a range of shops, restaurants, offices, workshops and new public open spaces.
Balfour will provide up to £35m of equity over eight years, representing 50% of the equity required. Balfour’s UK construction business will deliver all construction, which is expected to generate approximately £400m of revenue. The development will be constructed in phases over eight years with around 50 apprenticeships to be created along with 350 construction jobs at the peak of construction. PfP will manage sales and letting, deliver housing and operational services and take ownership of the affordable housing.
"This project marks our entry as an investor and developer into the UK's regeneration and housing sector. This market is growing and offers significant opportunities for the group in the coming years. With our partner, Places for People, we are very excited to be able to create these new, vibrant, sustainable communities for East London,” said Leo Quinn, chief executive of Balfour Beatty.
London’s Mayor, Boris Johnson added that is absolutely vital to provide thousands of new houses to allow people to live close to their places of work. “I am thrilled to confirm we have now appointed high quality developers to help bring forward plans for these important new neighbourhoods on our iconic Queen Elizabeth Olympic Park, a whopping six years ahead of target,” said Johnson.