Gateshead Council has picked two construction / developer teams to advance to the final bidding stage of a £1bn house-building scheme.
Evolution Gateshead, comprising Home Group and Galliford Try, plus Compendium Group, made up of Riverside Group and Lovell Partnerships, will now be invited to tender for the job of developing around 2,500 homes across 19 different sites in Gateshead.
A McInerney / First Base team and a Barratt / Keepmoat partnership, the other two bidders shortlisted earlier in the year, have missed out.
The work will be carried out over a period of 15-20 years by a formal partnership called a Joint Venture Vehicle (JVV), which will involve Gateshead Council and the successful bidder.
The local authority will make the final selection of its approved bidder in February 2011.
Gateshead has identified approximately 70 hectares of land suitable for housing development. The majority of the sites are either already in council ownership or are in the process of being acquired, and include sites at Birtley Northside, the former Freight Depot on the Felling by-pass, and demolition sites in Bensham and Saltwell.
The anticipated 2,500 new homes will be built to a minimum Code for Sustainable Homes Level 4. Some 25% will be affordable social housing.
The gross development value is around £1bn.
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