The deals are a mix of regeneration schemes and joint ventures with councils, public sector bodies and development partners across Kier Property’s main areas of focus – Trade City, its 'own-brand' for speculative industrial warehouse space, primarily in London and the south-east, and mixed use and pre-let developments.
The pace, scale and scope of the deals position Kier Property to take advantage of rising business confidence in an economy showing encouraging signs of recovery. It also highlights the company's ability to use cash generated by the other two arms of the Kier Group – Construction and Services, recently boosted by the acquisition of May Gurney creating a Group with annual revenues of £2.8bn – to forward fund developments.
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A deal to regenerate Watford Health Campus has been the standout agreement of the last three months. The 375,000sq ft regeneration development is in partnership with Watford Borough Council and West Hertfordshire NHS Trust and paves the way for the delivery of 650 new homes, retail and commercial space, creating 1,600 local jobs in the process.
Other deals signed include:
• Birmingham: 24,000sq ft office development
• Royston: 296,000sq ft scheme to build 140 houses and a health centre
• Bracknell: 40,000sq ft retail and industrial scheme in Berkshire
• Uxbridge: 120,000sq ft light-industrial space in West London
• Sydenham: a 220,000sq ft retail and warehouse park
• Ashford: 97,000sq ft development in partnership with Kent County Council that will deliver 108 new houses in Kent
• Romsey Road: 127,000sq ft housing development that will provide 179 new homes and retail space in Southampton.
Kier Property managing director, Nigel Turner, said: "This has been a very busy and successful three months for the team and the scale and scope of deals transacted underpins our growing reputation in the market as a business that makes things happen.
"With our ability to use cash generated from other divisions of Kier Group, we are in the healthy position of being able to speculatively develop sites in response to volume enquiries for flexible, value-for-money units."
(CD/JP)
