Construction and infrastructure group Balfour Beatty has agreed a £400m deal to build and help finance 1,500 homes at the London Olympics venue.
Balfour Beatty will put up half of the £70m required to construct 450 affordable homes, 530 private homes and 500 rental properties at Queen Elizabeth Olympic Park.
The deal with London Legacy Development Corporation will see Balfour form a 50:50 joint venture with Places for People – one of Britain’s largest housing associations – to deliver two new neighbourhoods called East Wick and Sweetwater at the east London site.
East Wick will have up to 850 homes including townhouses, mews, studios and flats and a new nursery and Sweetwater will have up to 650 homes and will include studios, apartments and family homes with private gardens, a new nursery, library and a health centre. Both communities will have a range of shops, restaurants, offices, workshops and new public open spaces.
The plan had originally been to construct the two neighbourhoods by 2029, but in July 2013 London Mayor Boris Johnson announced he was moving the project forward.
The development, which is expected to generate £400m in revenue, will now be built in phases over eight years by Balfour Beatty’s UK construction business.
The Mayor of London 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.”
Leo Quinn, Balfour Beatty Group Chief Executive, added: “This project marks our entry as an investor and developer into the UK’s regeneration and housing sector. 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.”
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