Morgan Sindall Investments and Hertfordshire County Council – £2bn Property Delivery Joint Venture
Hertfordshire County Council and Morgan Sindall Investments Limited (MSIL), the investment division of construction and regeneration group Morgan Sindall Group plc, following a competitive procurement process, have agreed terms to form a joint venture Property Development Partnership between the council’s own property company, Herts Living Ltd and MSIL subsidiary, Community Solutions for Regeneration (Hertfordshire) Limited (CSRH).
The 50:50 partnership, to be formally known as Chalkdene Developments, will provide new homes and jobs across the county through a series of housing-led developments on the Council’s surplus land. The partnership agreement between Herts Living Ltd and MSIL’s subsidiary CSRH is for 15 years, with the option to extend to a further five.
The partnership will focus on 12 locations and have the capacity to deliver in excess of 500 properties, providing much-needed homes across the county in close proximity to existing infrastructure. Capacity has been established, through the OJEU procurement process to extend this to approx. 40 sites with a gross development value of up to £2bn, as stated in the OJEU notice.
The partnership will benefit from working with other companies within the Morgan Sindall Group to enable it to deliver the works at pace. These include the Group’s residential specialist, Lovell Partnerships Ltd, and its Morgan Sindall Construction & Infrastructure Ltd division.
The development partnership also has the potential to deliver schemes under the Government’s One Public Estate initiative and on behalf of other public sector authorities in addition to Hertfordshire County Council.
Lisa Scenna, managing director of Morgan Sindall Investments, said: “We understand how important the development of new housing is for Hertfordshire and are excited to have the opportunity to work with Herts Living in fulfilling the Council’s vision. Our expertise in using this flexible joint venture approach will ensure we can work closely with Herts Living to deliver high-quality, sustainable development at pace and respond to the changing needs of Hertfordshire’s residents and communities over time.”
Steve Faber, managing director of Herts Living, said: “We are delighted to be working with Morgan Sindall Investments to deliver new, high quality, sustainable houses that will help the county to meet the needs of its growing population, reduce the housing shortage and provide much needed social housing and community assets. Doing this will also release significant capital over the long term for strategic expenditure and investment.”