Inland Homes plc, the specialist brownfield land development and housebuilder with a focus on the South and South East of England, has exchanged contracts for the sale and related development contract for its Merrielands Crescent site in Dagenham, East London with Clarion Housing Group, the UK’s largest Housing Association.
The transaction is for a total land and build consideration of £77.7 million, with the land being sold for £14.0 million payable on completion. Inland Partnerships, the fast-growing construction arm of the Group, will undertake the development phase on behalf of Clarion, which is expected to take approximately three years.
The development of this four-acre site will comprise 325 residential units across a number of five to ten storeys apartment blocks, together with 1,514 sq. m of commercial space, 178 car parking spaces and associated amenity area.
The Merrielands Crescent site is in the heart of a major East London regeneration zone and is already leading to other potential similar opportunities in the area.
This contract evidences the appeal of Inland’s turnkey solution for strategic partners and further strengthens the Group’s existing relationship with Clarion, for whom Inland is currently building 135 units in Alperton, West London. These partnership transactions enable Inland to recognise land profits whilst also securing cash positive construction contracts that provide a balance to open market speculative housebuilding.
Inland now has a record forward order book of over £145 million in its Partnership housing division.
Inland currently has 1,455 homes under construction for private sale and this latest partnership contract brings the total number of homes being built for housing associations to over 800.
Stephen Wicks, CEO of Inland Homes commented:
“This is an important transaction for Inland and a significant build contract for our fast-growing Partnerships business.
“This contract further evidences our high-quality land holdings and demand for our turnkey proposition as we complete our transition from a business that was predominantly focused on land trading to a business predicated on delivering our stated medium-term target of 1,000 homes per annum.”