Housing association offloads division as part of move away from non-core operations

Housing association L&Q has confirmed it is set to complete the sale of L&Q Estates to developer Urban & Civic.

The firm bought the business, formerly known as Gallagher Estates, in 2017 to unlock land for housing development on a regional basis, promoting sites through the planning process, from the pre-allocation stage to securing planning consents.

At this year’s UKREIIF conference in May, the chief executive of L&Q, Fiona Fletcher-Smith, said the housing association was in the process of completing a deal to sell its strategic land company and had also put its PRS portfolio up for sale.

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Fiona Fletcher-Smith said the land business was non-core

She said L&Q Estates and its PRS business were not “core” and added: “They’re commercial activities that we bolted on over the years that don’t make sense anymore.”

Urban & Civic said Catesby Estates, the developer’s land-promoting subsidiary, will benefit substantially from expansion into new target areas.

The firm’s chief executive Nigel Hugill added: “The acquisition promises a step change for Urban & Civic and Catesby Estates as the new government looks at immediate means by which housing numbers can be lifted.”