The deal paves the way for Keepmoat, the self-styled “busiest private house builder in Newcastle”, to support a further £120m investment by New Tyne West in the project over the next five years.
Keepmoat said that it would double construction output, delivering at least 100 homes a year – around 30% more than when it was working in tandem with Barratt.
Keepmoat has already built almost 800 homes across eight sites in Newcastle since 2016
Work has already started on phase two of the project, with the first 10 homes occupied before Christmas and plans are being drawn up for phase three. Altogether, this will create more than 500 family homes.
The New Tyne West Development Company (NTWDC) - a partnership launched by Newcastle City Council with Keepmoat Homes and Barratt Homes – was established to deliver a £265m housing-led regeneration programme in the west of the city. Since building began in 2013, almost 400 homes have been completed – 332 for private sale and the remainder for affordable rent and shared ownership.
NTWDC director Lee McGray said: “We are delighted that Keepmoat Homes has committed to continue its investment in The Rise, just as phase two of the development is beginning to sell, with new show homes open for safe viewings and planning consent anticipated for phase three.
“Of course, as well as the much needed homes, Keepmoat brings an excellent track record of community support and involvement which have been key factors in the success of the project.”
Keepmoat Homes divisional chairman Ian Hoad added: “Our confidence that this project would deliver positive change in the west of Newcastle has proved well founded and we had no hesitation in extending our commitment to continue the drive for social and economic regeneration here.
“Along with ventures in Glasgow, Edinburgh, Sheffield and Northfleet on the River Thames, The Rise is now one of our key flagship projects, delivering quality, affordable new homes and improving opportunities for the new and surrounding communities.”
When completed, The Rise will comprise around 1,800 homes with its own £6m district heating system – already in place – and a neighbourhood centre.