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Sun April 11 2021

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Kier builds on back of Southdale novations

26 Jun 15 Kier Living has confirmed the novation of 17 contracts with a combined value of £55m from failed northern house-builder Southdale.

Kier Living's former Southdale contracts are in various stages of completion, and are located across the northwest and Yorkshire. They are for a range of public sector clients and vary in size from developments of 15 units up to schemes of more than 100 units. However, no new contracts from the northeast were commercially viable to be novated from Southdale.

Halifax-based Southdale went into administration on 29th April as a result of severe cash flow problems. [See previous report here.]

Kier has also retained some Southdale staff, bringing Kier Living’s national workforce to more than 550.

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As part of the expansion and reorganisation of the Kier Living Northern business, Southdale’s Halifax team will be moving across to Kier’s regional hub in Thorpe Park in Leeds over the coming months, while retaining a presence in Warrington and North Tyneside.

Kier Living executive director John Anderson said: “This is proving to be an exciting first year for the business. Having successfully formed our national residential division, Kier Living, in 2014, we have been independently rated by the Home Builders Federation as 5* by our customers, and we have accelerated our plans for growth this year, moving the business closer to our 4,000 unit a year ambition.

“Combined with the northern talent through the Southdale acquisition, we are now in a very strong position to work with clients to help solve the national housing crisis, with a capability to manage projects of all scales across the UK, leveraging our almost unique end-to-end offering from funding, planning, development, housing maintenance, FM and private market sales expertise.”

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