Housebuilder Rydon Construction and refurbishment and M&E group United House have formed a joint venture company called Unitary. The new operation is intended to win a slice of the £2bn of community regeneration work that it predicts will come through in the next five years.
The companies say the venture is unique because it offers to handle regeneration projects on a “full partnering basis” and will introduce alternative funding routes, such as the private finance initiative, where appropriate.
Unitary will offer to join housing associations in the bidding rounds for stock transfers, where a local authority transfers its housing stock to an association.
It will supply a range of services including resident liaison, refurbishment, specialist heating and land remediation.
“Unitary offers more than just construction and refurbishment expertise,” said Jeffrey Adams, managing director of United House.
He added: “When Unitary is involved from the start, we can help gain residents’ confidence; invest in the costs of securing the transfer and underwrite risk.
And once the vote has been secured, we will deliver the project and can help with long-term maintenance arrangements.” The companies claim a combined turnover of £150m and they say their new venture will offer an array of services that will help in their bid for work.
Rydon managing director Colin Dixon said: “The thing that was needed was a way of tackling the big boys who will try to squeeze out companies of our size, so we doubled our size.” Unitary believes that the £2bn of estates regeneration work will come from both stock transfer schemes and local authority PFI projects , in which councils award work directly over a 25-year period.
The venture is already targeting Reading, Newham and Camden councils, which are all drawing up “pathfinder” PFI schemes worth up to £70m each.
Each project should involve refurbishment and environmental improvements to existing properties, as well as some demolition work and new build of up to 2500 council flats.
