Business
Regeneration Agreements
Regeneration Agreements.
About this update from Mj Gleeson Plc
[{"type":"text","content":"\n Gleeson(M J)Group PLC\n17 April 2007\n\n\nTuesday 17 April 2007\n\n MJ GLEESON GROUP PLC\n\n Financial close achieved on Stanhope Estate, Ashford PFI\n\nGleeson (GLE.L), which is transforming itself into a specialist in housing\nregeneration, announces that its Chrysalis Consortium has signed Development and\nProject Agreements with Ashford Borough Council in Kent for the regeneration of\nthe Stanhope Estate - importantly, Gleeson's first regeneration scheme in the\nSouth of England.\n\nPursuant to the Development Agreement, Gleeson Homes & Regeneration South will\nundertake the development of 442 new homes, together with a commercial centre\ncomprising three retail units and a pub/restaurant, together valued at £50m. The\ndevelopment will take place on 10 sites, in four phases, over five years. The\nsplit of new homes is 70% (309 units) to be affordable (social rent and shared\nownership) for sale to Moat Housing Group and 30% (133 units) for private sale.\n\nThe Project Agreement covers the refurbishment, maintenance and management of\nthe retained dwellings and public open space, together with the creation of a\nnew Stanhope Community Centre. Pursuant to this Agreement, whose term is 30\nyears, Gleeson's subsidiary, Gleeson Services, under its Powerminster brand,\nwill provide facilities management services, valued at £23m.\n\nThrough its PFI-focused subsidiary, Gleeson Capital Solutions, Gleeson created\nthe Chrysalis Consortium to bid for this Housing Revenue Account (HRA)\nPFI-funded scheme. Gleeson's partners in the Consortium are the Kent-based Moat\nHousing Group, delivering housing management services, and Nationwide Building\nSociety, funding the scheme. Nationwide and Gleeson are partners in the\nsuccessful regeneration project at Grove Village in South Manchester, a £103m\neight year programme which was the first substantial Local Authority housing\nPFI, with a similar HRA structure to the Ashford PFI.\n\nDermot Gleeson, Chairman, stated 'When considering PFI-funded regeneration\nschemes, our ultimate aim is to secure long-term work for Gleeson Homes &\nRegeneration in new build housing for sale and for Gleeson Services in\ninstallation work and maintenance, whilst securing equity returns via\nparticipation in the PFI investment. The Ashford scheme fully meets those\nobjectives. Now that Ashford is und...