Inland Homes agrees acquisition and development of Hounslow site
Inland Homes
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17:30 29/09/23
Developer and housebuilder Inland Homes announced on Friday that its asset management division has entered into agreements relating to the acquisition and development of one of the largest brownfield sites in London - the 36.7 acre Cavalry Barracks in Hounslow.
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The AIM-traded firm had said in its report that a growing part of its business involved procuring sites on behalf of, and providing planning and management services to, investors in the property sector.
It explained that it typically enters into a planning and management services agreement with the investors, which includes procuring the opportunity to acquire brownfield land, adding value by managing the planning process and proposing a disposal plan for the consented site.
That activity enables Inland Homes to earn substantial fees with a significantly reduced investment, the directors said.
Using that model, the site was being acquired from the Defence Infrastructure Organisation (DIO), which manages the assets of the Ministry of Defence, with completion being subject to vacant possession and anticipated to be in August 2021.
Inland Homes said it expected to make a planning application for a residential-led mixed use scheme of more than 1,000 homes within the next six months.
The group said it would manage the planning and development process on behalf of the equity investors on the project, and would be entitled to receive a “significant” share of the development profit from the opportunity.
Inland said the project would have an anticipated gross development value in the region of £600m.
It was currently the home of the Irish Guards, who were relocating to Aldershot.
The site comprises more than 37 acres of land, and includes 14 Grade II-listed buildings and 19 locally-listed buildings, together with over 439 existing residential accommodation units.
Inland said the entire site was allocated for a major mixed-use development via a development brief adopted by the London Borough of Hounslow.
“This is our fifth Ministry of Defence transaction and the largest to date,” said chief executive officer Stephen Wicks.
“We have an excellent track record in the early delivery of homes on sites such as this, a significant proportion of which will be affordable, which is particularly important in London Boroughs like Hounslow.
“Our asset management division now has six live projects in London which have the potential for over 2,700 homes together with employment opportunities.”
Wicks said those were Walthamstow with 583 units, Barking with 405 units, Hillingdon with 514 units, Staines with 210 units, and Hounslow in excess of 1,000 units.
“It is a testament to our long and successful track record in Brownfield development that our investors have the confidence to commit significant sums to these projects, particularly in the current challenging economic climate.”
At 1628 BST, shares in Inland Homes were up 5.74% at 53.4p.