Belan Ltd has sold its social housing developer subsidiary, Partnerships First, to Kier Ltd in exchange for Kier’s 49% stake in Belan.
The business will be run in conjunction with Kier’s existing social housing business to form Kier Partnership Homes. It has a projected annual turnover of around £70m and will operate from offices in Dorking, Bristol, Aldridge near Birmingham and Southampton.
John Cadwallader, chief executive of Belan, described the sale as a significant move. “The social housing market is buoyant at present thanks to the government’s ongoing commitment to investment in the sector,” he said.
“We believe that with the resources of a large construction company such as Kier at its disposal, the company will be exceptionally well placed to capitalise on these opportunities and further enhance the service levels to its housing association and local authority client base.”
Mr Cadwallader said the sale would enable Belan to concentrate on its Torwood timber frame manufacturing businesses at Ipswich and Livingston.
He added: “Torwood will continue to invest in and develop its products, particularly the advanced Tee-U-Tec system, and build on its relationships with housing association, local authority and house building customers, including the Amphion consortium, and remain at the forefront of the off-site manufacturing thrust.”
Kier regional chairman Martin Scarth, who will chair Kier Partnership Homes, said: “Following the government’s pledged spend on affordable housing, now is a good time to ensure that Kier is well positioned to react to emerging markets.
“By strengthening and building on our existing social housing business, the group is poised to deliver an excellent service over a wider area for the benefit of many local housing associations and local authorities.”
Last year Kier Partnerships built 300 units, 90% of which were timber frame.
