L & Q set up in-house construction business
London & Quadrant has set up its own in-house construction business.
The 66,000-home association has set up Quadrant Construction as a wholly-owned subsidiary to deliver part of its 10,000 unit pipeline.
The landlord says it hopes to build QC into a £40 million turnover business. It is funded by a £50 million loan from L & Q.
Work on its first project, a 146-home scheme in Lewisham, began yesterday. Jerome Geoghegan, director of development at L & Q, said: ‘Working with external contractors can be risky in a post-recession climate, with the ever-present possibility of contractor failure.
‘At the same time, in boom times investing in a subsidiary business can help ensure we can generate adequate surpluses to reinvest in future developments.
‘While we will continue to work with other developers to build and increase our portfolio, by launching Quadrant Construction we believe we are better spreading our risk, as well as maintaining a diverse business offering and varied profit streams.’
Diversification was crucial to business success in a fluctuating market, Mr Geoghegan, and this would ultimately put L & Q in a better position to continue providing new homes and providing services in communities.
‘In today’s market, more than ever, it is vital for housing providers to ensure delivery certainty so we can continue to build the thousands of affordable homes urgently needed across London and the South East,’ he added.