Balfour Beatty 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
This will see the company’s first entry to the sector as a major housing developer in the UK.
Balfour Beatty Investments will provide up to £35m 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 £400m of revenue.
The transformational project at Queen Elizabeth Olympic Park in East London 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.
Around 50 apprenticeships will be created along with 350 construction jobs at the peak of construction.
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.”