DRE advising National Grid
Initiative to redevelop brownfield sites expected to create 14,000 new homes across London and the South East over next 15 years
7 November 2014
National Grid plc (“National Grid”) and The Berkeley Group Holdings plc (“Berkeley”) today announced the establishment of a new Joint Venture to develop major residential and mixed-use development schemes across London and the South East. The partnership, to be named St William Homes LLP (“St William”), brings together access to a significant portfolio of brownfield land owned by National Grid Property in key areas of housing need with Berkeley’s expertise to design, build and market new developments.
National Grid has over 20 sites in London and the South East with the potential to provide over 14,000 homes over the next 10-15 years. In its first phase, St William aims to develop more than 7,000 new homes, including over 2,000 affordable homes. Development at this scale would also deliver 5,500 jobs, 2 new schools and 22 acres of public open space, transforming 84 acres of former industrial land and contributing over £150m to local infrastructure and amenities.
The joint venture will have funds available of up to £700m, making it one of the top ten house-builders in Britain by turnover. This is new capital which will deliver additional homes and help tackle the housing crisis. It aims to commence development activity on its first site in 2016, with the first homes being delivered in 2017.
Steve Holliday, the Chief Executive of National Grid, said:
‘By bringing together Berkeley’s development expertise with National Grid Property sites, we hope to transform redundant land that was once at the heart of the industrial revolution to meet the housing and commercial needs of the 21st century.’
Rob Perrins, Managing Director of the Berkeley Group, said:
‘This is good news for homebuilding. St William will take these sites and turn them into new communities. I am delighted to be working with a partner like National Grid which shares our values and has such a strong pipeline of land and assets.’
National Grid and Berkeley will be equal shareholders of St William, each owning 50% of the equity. National Grid’s investment in St William is limited to the value of the sites acquired by the JV. Funding of the £700m will be through a combination of shareholder equity and bank funding at an equity-to-debt ratio of approximately 50:50.
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