Balfour Beatty, the international infrastructure group, has announced it has signed a development agreement with the London Legacy Development Corporation to invest and construct the new East Wick and Sweetwater housing development project.
Balfour Beatty Investments will provide up to £35 million of equity over eight years, representing 50% of the equity required. Balfour Beatty's UK construction business will deliver all construction, which is expected to generate approximately £400 million of revenue.
The transformational project at Queen Elizabeth Olympic Park in East London is being delivered in a 50:50 joint venture with Places for People (PfP). It will create two new neighbourhoods, to be called East Wick and Sweetwater, with up to 1,500 homes including 450 affordable homes, 530 homes for private sale and 500 private rented sector homes.
East Wick will have up to 850 homes including townhouses, mews, studios and flats and a new nursery and Sweetwater will have up to 650 homes and will include studios, apartments and family homes with private gardens, a new nursery, library and a health centre. Both communities will have a range of shops, restaurants, offices, workshops and new public open spaces.
The development will be constructed in phases over eight years with Balfour Beatty's UK construction business delivering all of the construction. Around 50 apprenticeships will be created along with 350 construction jobs at the peak of construction. PfP will manage sales and letting, deliver housing and operational services and take ownership of the affordable housing.
Leo Quinn, Balfour Beatty Group Chief Executive said: “This project marks our entry as an investor and developer into the UK's regeneration and housing sector. This market is growing and offers significant opportunities for the Group in the coming years.
“I look forward to continuing our strong partnership with the London Legacy Development Corporation to ensure that commitments made as part of the London 2012 Games are delivered by not only creating new communities but also new jobs, and apprenticeships for young people wanting to join the growing infrastructure sector. With our partner, Places for People, we are very excited to be able to create these new, vibrant, sustainable communities for East London.”
The Mayor of London, Boris Johnson, said: “This is the most successful and fastest growing city anywhere in Europe, and it is absolutely vital we provide thousands of new houses to allow people to live close to their places of work. I am thrilled to confirm we have now appointed high quality developers to help bring forward plans for these important new neighbourhoods on our iconic Queen Elizabeth Olympic Park, a whopping six years ahead of target.”
David Cowans, chief executive at Places for People, said: "This is East London's moment and it's our big moment too and we are thrilled to have been selected to be part of the transformation of Queen Elizabeth Olympic Park. With our partner, Balfour Beatty, we have the perfect opportunity to work with LLDC to create a truly unique and exciting place to live. This is exactly what Places for People is about, making great places and ensuring that the true Legacy of 2012 lives on by creating opportunities for the existing communities around the park to share in its success.”