The JV is 69% owned by Kier, with state-owned Homes England owning 26% and Cross Keys Homes 5% – although Kier has only 50% of the voting rights.
Kier said that the partnership created an opportunity for it to increase the scale of its mixed tenure house building activities by around 500 units a year by 2020.
Kier will receive £27m for its initial contribution of four development sites, which will be financed by a loan to the JV from Homes England. The JV partners will contribute £47m of equity funding in proportion to their economic ownership. The terms are currently being agreed with third party lenders to provide up to £80m of additional investment for the future development of new schemes by the JV.
Kier chief executive Haydn Mursell said: "This joint venture is an important milestone, bringing Homes England, Cross Keys Homes and Kier together in a new strategic partnership which will help address the national housing deficit. As joint venture partners, we have a shared ambition to work collaboratively to build more affordable homes across the country."
Homes England chief executive Nick Walkley added: "At Homes England, we're using our finance, land and expertise to build more homes in areas of greatest need. Our innovative deal with Kier and Cross Keys Homes shows how we intend to form new commercial partnerships to increase housing supply, address affordability issues and generate value for the public purse.”