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L&Q to bring land business in-house to become ‘master developer’
London’s largest housing association, L&Q, will bring its land business in-house so that it can take on the role of ‘master developer’ on more sites, it has announced.
L&Q bought the major commercial land business Gallagher Estate for £505m in February 2017 in what was considered at the time a landmark deal for the sector.
According to L&Q, bringing it in-house will allow it to take on the role of master developer across more sites, meaning it would prepare sites for building but then sell them on to other developers rather than build out themselves.
The association also revealed that this move will allow it to expand its area of operations, for example by working more in Greater Manchester.
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Over the past two years the business, which will now join L&Q’s development division and be renamed L&Q Estates, has continued to grow.
One of the largest strategic land businesses in the world, Gallagher has sold 5,500 plots since L&Q bought it and now controls land that L&Q said is capable of delivering 46,500 new homes, mainly in the South and South Midlands.
L&Q said bringing the business in-house will help it to work with local authorities and other public and private sector partners as it attempts to increase housebuilding to 10,000 a year.
Under the new group structure, L&Q Estate will supply land to L&Q to build out itself and also sell land to other house builders across the country.
Gregg Wilkinson, group managing director at L&Q, said: “Our highly experienced team of experts will continue to deliver a quality product to the market place that provides landowners with the confidence that our approach will drive value, and demonstrates to local authorities that we are a leading enabler of quality homes and sustainable communities.
“By aligning with L&Q’s broader ambition to deliver 100,000 homes, L&Q Estates will now expand by targeting additional opportunities with new partners. Further, we will increase our area of operations to support L&Q’s wider geographical interests such as those in Greater Manchester.”
Fiona Fletcher-Smith, group director of development and sales for L&Q, said: “This move responds to Homes England’s five-year plan and the Letwin Review by enabling L&Q to unlock land for development across a wider range of tenures, and speed up the delivery of new homes on a regional basis through our ability to commit and invest over the long term.
“By bringing the unrivalled skills and experience of the Gallagher team into L&Q’s development division, L&Q will be able to promote land, secure consent, deliver essential infrastructure, build quality new homes and create many thriving communities that are managed by L&Q in perpetuity.”
