Partnership sees new £70m investment in London Overground extension
The Mayor of London Boris Johnson has welcomed a new joint venture partnership with London and Quadrant (L&Q) to drive a major regeneration programme and fast-track the building of almost 11,000 new homes at Barking Riverside. Bellway Homes, who were instrumental in setting the site up with planning permission and developing the early phases, will continue to make a significant contribution as a development partner bringing forward plots for market sale.
The 179-hectare former Barking Power station site had lain dormant for more than 35 years, but will now become a significant source of housing provision in the capital following a joint venture agreement between the Greater London Authority (GLA) and L&Q. The development will see the creation of a new town the size of Windsor, delivering 10,800 new homes for Londoners, around a third of which will be affordable. The development also includes 65,000 square metres of commercial, retail and community facilities, one secondary and up to four primary schools, public squares and walkways, and major new highway infrastructure.
The new agreement will see a £70 million investment from L&Q into a £263 million project to deliver the extension of the London Overground to a new station at Barking Riverside, which will be completed by 2021. The extension of the Gospel Oak line from Barking to Barking Riverside has now been fully funded through City Hall, Transport for London and L&Q. Work on the extension begins in 2017 and will put Barking Riverside within 25 minutes of central London. New roads, bus routes and river taxi services will also connect the new neighbourhood to other parts of the capital.
L&Q has taken over a 51 per cent stake in the joint venture from Bellway Homes who retain an option to deliver significant proportion of market sale homes on the site as development partner, and as a supporting contractor for affordable housing units. The new partnership between L&Q and City Hall, combined with a fully funded transport programme, will significantly increase the rate of progress on site. L&Q plans to quadruple the level of housebuilding on site to 600 homes a year.
As a housing association, L&Q’s investment model allows for an unprecedented scale of long-term investment and infrastructure development. The partnership also has the option to access £55 million of funding via the Homes and Communities Agency’s Large Sites Infrastructure Fund, as confirmed by the Chancellor in the 2015 Autumn Statement, which has helped to accelerate development on the site.
The site is among the 414-hectares inherited by the Mayor in 2012, all of which has now been released to the market and will deliver 50,000 homes to 125,000 Londoners.
The Mayor of London, Boris Johnson MP, said: ““This major development clearly demonstrates the vital importance of transport infrastructure in unlocking brownfield land in London. Having languished empty for far too long, this former power station site is now ripe and ready not only to deliver thousands of new much-needed new homes, but creating jobs and growth in a whole new bustling town in east London.”
David Montague, Chief Executive of L&Q, said: “We’re delighted to help lead one of the largest and most ambitious regeneration schemes in Europe. Barking Riverside will deliver almost 11,000 homes for Londoners and make an enormous contribution to support efforts to increase housing supply in the capital. The potential of the project is enormous and – as a leading housing association and developer – we have the vision and financial strength to make a long-term investment and commitment to help fulfil that potential.
“We’re setting out to quadruple the speed of delivery of new homes and that starts with investing in the critical transport infrastructure to connect Barking Riverside with the rest of the capital. The scheme is a significant step in delivering L&Q’s promise to build a pipeline of 50,000 new homes in the next 10 years.”
Ted Ayres, Chief Executive at Bellway said: “We’re pleased to continue our involvement in this landmark project for London. Having played a significant and instrumental role in taking Barking Riverside through planning and into its initial stages of delivery, we will now be focused on bringing forward a series of housing phases in partnership with the GLA, L&Q and the London Borough of Barking and Dagenham.”
Leader of Barking and Dagenham Council, Councillor Darren Rodwell, said: “Barking Riverside is a key regeneration scheme, not just for Barking and Dagenham but for London, and it’s fantastic that L&Q has become a part of it as I am sure that they will bring both ambition and long term commitment to the area. Their £70 million investment to complete the funding needed to extend the London Overground – connecting Barking Riverside with the rest of London – is something which will be of considerable benefit to both the existing community and those thinking of moving here.”
L&Q’s investment at Barking Riverside is part of its five-year plan to accelerate its output and deliver 50,000 new homes over the next decade. Last year, L&Q issued a bond of £250 million with a 34-year deal to support its growth plans.
– Ends –
For further editorial information please contact:
Alexander Hall / Jenny Marshall
+44 (0)20 7636 7366
Notes to editors
- L&Q is a leading residential developer in London and the South East. For over 50 years, L&Q has been driven by its mission to create places where people want to live. Today it continues to help shape one of the most exciting, diverse and dynamic capitals in the world.
- L&Q creates high quality homes for people across a whole range of incomes, leads major residential and mixed-use developments, and is committed to delivering a 50,000-home pipeline in the next decade.
- L&Q invests for the long term. It uses its significant investment capacity to unlock major infrastructure projects and create entirely new places.
- L&Q is a long term investor – driving up quality and value for generations to come. Its thoughtful, award-wining approach creates thriving communities which help make this country an even better place to live. As a charitable housing association, every surplus penny is invested back into providing more new homes for everyone and services for its residents.
- Bellway is a FTSE 250 listed national housebuilder and has become the fourth largest volume housebuilding Group in the UK, constructing and selling more than 140,000 homes over the past 70 years. The company has its headquarters in Newcastle upon Tyne.
- Bellway operates from 17 trading divisions throughout the UK and constructs and sells high quality homes to suit a variety of budgets and tastes, from one-bedroomed apartments up to five-bedroomed family homes, including the provision of social housing throughout the country.
- Bellway employs over 2,100 employees and indirectly engages a substantial number of other workers via sub-contract arrangements.