Following a competitive procurement process, Morgan Sindall Investments has agreed terms with Hertfordshire County Council to form a property development partnership. The joint venture is between the council’s own property company, Herts Living, and Morgan Sindall Investments’ vehicle, Community Solutions for Regeneration (Hertfordshire) Limited (CSRH).
The 50:50 partnership, called Chalkdene Developments, will run for 15 years, with the option to extend to a further five.
Chalkdene Developments will initially focus on 12 locations and have the capacity to deliver more than 500 properties. But there is scope in the deal to extend this to approximately 40 sites with a gross development value of up to £2bn.
The partnership will work with other companies within the Morgan Sindall Group, including its contracting business and its Lovell house-building division.
The development partnership also has the potential to deliver schemes under the government’s One Public Estate initiative and on behalf of other public sector authorities in addition to Hertfordshire County Council.
Morgan Sindall Group chief executive John Morgan said: “This win demonstrates the potential for our Investments division to become a meaningful contributor to group profits. It also reflects our ability to leverage our diversified portfolio of businesses to offer our partners and customers a comprehensive solution spanning strategic partnerships and project delivery.
“We understand how important the development of new housing is for Hertfordshire and are excited to have the opportunity to work with Herts Living in achieving the council’s vision.”
Steve Faber, managing director of Herts Living, said: “We are delighted to be working with Morgan Sindall Investments to deliver new, high quality, sustainable houses that will help the county to meet the needs of its growing population, reduce the housing shortage and provide much needed social housing and community assets. Doing this will also release significant capital over the long term for strategic expenditure and investment.”