The five-year deal, worth £80m on a 50:50 joint basis, will focus on residential developments on urban brownfield sites, initially in southeast England.
The partnership will acquire sites with or without full planning permission and aims to build 2,000 homes for sale and rental by 2027.
The alliance represents a change of strategy for both organisations. Kier is now looking for business in the mixed-use regeneration market, while Housing Growth Partnership is broadening its support to larger companies.
Formed in 2016, Housing Growth Partnership (HGP) is funded by Lloyds Banking Group and Homes England to promote and exploit housing development. It describes itself as “a social impact investor” on a mission “to help SME builders grow their businesses”.
Kier is not an SME; it is a London Stock Exchange listed public company.
HGP chief executive Vic Hepburn explained: “The partnership with Kier represents the next step in the expansion of HGP, so we can play as full a role as possible in supporting the UK’s diverse and evolving housing need as part of our commitment to help Britain prosper.”
Kier Property managing director Leigh Thomas said: “This partnership sits well with our five-year business plan to expand our offering in the mixed-use regeneration area. It will significantly augment our residential regeneration strategy and we have identified a number of sites that we plan to deliver through the partnership, where we can add value through the planning process.”
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