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House builder and social landlord sign £103m joint venture
Bovis Homes and Liverpool-based landlord Riverside have agreed a £103m joint venture partnership to build more than 3,600 homes and community facilities in Northamptonshire.
The house builder and the housing association will own the joint venture in a 50/50 agreement. The site, at Stanton Cross, on the edge of Wellingborough, will eventually be home to a new community with shops, offices, new schools and public parks.
Bovis Homes completed 22 units on the site in 2018, but has now transferred assets worth almost £103m, including land and work in progress, into the joint venture.
Both partners have contributed £33.1m of equity alongside an existing £36.4m Homes England loan.
According to an investment presentation by Riverside last year, the social landlord sees the site as an “investment opportunity”. It added: “The success of our business plan is not reliant on the income generated from these open market sales.”
Greg Fitzgerald, chief executive of Bovis Homes Group, said: “We are very pleased to have formed this partnership with Riverside, one of the UK’s leading providers of affordable housing, and look forward to creating this exciting new community at Stanton Cross with them.”
Carol Matthews, chief executive of Riverside, said: “I am absolutely delighted that we have completed our partnership with Bovis Homes. This major investment is part of Riverside’s objective to step up our contribution to responding to the housing crisis. I believe that both organisations will benefit from the opportunity to work together in creating a new place.”
In February, Bovis announced the launch of a Partnership Housing Division, through which it will seek to secure housing association partners to develop land led schemes.
At the time, Mr Fitzgerald said the new division would be the company’s biggest area of growth in the coming years.
Other house builders have also sought to establish divisions which will work with affordable housing providers: last week, Bellway unveiled its new London Partnerships arm, which will work with social landlords across the capital.
Update: at 12.54 on 03.04.19 This story was updated to correct the value of the joint venture.
