London’s largest privately-owned residential developer, Galliard Homes recently announced a joint venture (JV) focussing on regeneration projects in the South East of England, providing new homes with a value of £1bn over the next three years.
Founded in 1992, Galliard Homes are specialists in regeneration projects, typically building and selling new homes located on brownfield land, priced from £250,000 up to £1m.
The 50:50 JV has been established between Galliard and privately-held investor Cain Hoy Enterprises, each investing £225m in UK residential projects.
JV to develop residential properties in London’s leafy suburbs
Deutsche Bank is providing a three-year corporate facility to Galliard Holdings that will be used towards the Galliard share of the equity funding for the new collaboration.
The projects will be additional to the 4,000 units currently being constructed by Galliard and are projected to have a combined gross development value of more than £1bn.
The JV will kick-off the new programme with 2 Millharbour near Canary Wharf, after recently exchanging contracts on the site, which has planning potential for up to 900 luxury apartments together with ancillary facilities.
Stephen Conway, CEO of Galliard Homes commented: “The market in and around London remains robust and is underpinned by a shortage of properties, strong economy and international desirability. This significant investment will enable Galliard to expand our pipeline of new developments over the next three years in a focused and opportunistic manner, building on the success of its schemes to date.”
London’s property market remains robust
“Galliard’s proven ability to deliver popular, high-quality, profitable developments particularly as part of regeneration projects, makes it an attractive target for investment and a valuable joint-venture partner. Our property investment expertise and financial firepower, combined with their strong development team, puts us in an exceptionally strong position to deliver solid returns,” added Jonathan Goldstein, Cain Hoy’s head of European investments.
Galliard and Cain Hoy – named after a racehorse stable owned by legendary US businessman Harry Guggenheim – plan to develop residential properties in well-heeled London suburbs, like Clapham and Chiswick.
The joint venture is not likely to deliver much-needed affordable homes to the capital’s suburbs, as despite aims to ‘undercut’ other established homebuilders like Berkeley Homes and Ballymore, finished homes will carry a price tag of between £250,000 to £500,000.
Cain Hoy hit the headlines last September after launching an unsuccessful takeover bid on Tottenham Hotspur Football Club. Since then, the investor has gone on to form another JV with property company Sager to develop the £400m Islington Square mixed-use scheme on the site of the north London borough’s historic post office.
Outside the JV, Galliard Homes recently unveiled plans for a 600 unit residential development, designed to help fund a new stadium for AFC Wimbledon.
Source: IPIN Live