Kier launches northern housing JV

Kier has launched a new joint venture with housing association Together Housing Group aiming to deliver 1,000 new homes a year within three years.

Northern Ventures will develop mixed tenure housing projects across multiple sites in Yorkshire, Humber and the North West. It will enable registered providers with development aspirations and revenue needs to share activity, transfer risk and tap into Kier’s mixed tenure development expertise, national presence and sales infrastructure.

The JV’s first development site is in Huddersfield, West Yorkshire where it will build 113 new properties.

Paul Moore, managing director of Kier Living North said: “We are looking at a joint venture model that provides a longer-term sustainable relationship with a 3 -5 year business plan, giving both partners diverse and sustainable benefits.

“By working together, we can look at larger scale opportunities that are not only attractive financially for both parties, but contribute extra mixed tenure new homes to meet the current UK shortage. With Government focus on home ownership, the joint venture gives our partners opportunities to build housing stock of all tenures, as well as generating a commercial return on their investment that can be re-invested in the sector.”

Mark Dunford, finance director of Together Housing Group added: “THG is excited to enter into this partnership with Kier Living to ensure we continue to meet the aspirations of both the government and our own growth strategy. With focus now on home ownership, we needed to work closely with an experienced developer not only to share the risk and reward but also to learn from their experience and knowledge.

“The intention is to build 500 new properties per year and establish site specific limited liability partnership for each scheme. Any profit returned to the Group will be used to fund our affordable housing programme.”