Inland Homes sells Dagenham site to Clarion Housing Group
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17:30 29/09/23
Specialist brownfield land developer and housebuilder Inland Homes has exchanged contracts for the sale and related development contract for its Merrielands Crescent site in Dagenham, East London with the Clarion Housing Group housing association, it announced on Tuesday.
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The AIM-traded firm said the transaction was for a total land and build consideration of £77.7m, with the land being sold for £14m payable on completion.
Inland Partnerships - the construction arm of the group - would undertake the development phase on behalf of Clarion, which was expected to take around three years.
The development of the four-acre site would comprise 325 residential units across a number of five to 10 level apartment blocks, together with 1,514 square metres of commercial space, 178 car parking spaces and an associated amenity area, the board said.
It explained that the Merrielands Crescent site lay “in the heart” of a major East London regeneration zone, and was already leading to other potential similar opportunities in the area.
The contract evidenced the appeal of Inland's turnkey solution for strategic partners, the directors claimed, and further strengthened its existing relationship with Clarion, for which Inland was currently building 135 units in Alperton, West London.
It said the partnership transactions enabled it to recognise land profits, while also securing cash-positive construction contracts that provided a balance to open market speculative house building.
Inland said it now had a record forward order book of more than £145m in its partnership housing division.
It had 1,455 homes under construction for private sale, with the new partnership contract bringing the total number of homes being built for housing associations to more than 800.
“This is an important transaction for Inland and a significant build contract for our fast-growing partnerships business,” said Inland Homes chief executive officer Stephen Wicks.
“This contract further evidences our high-quality land holdings and demand for our turnkey proposition as we complete our transition from a business that was predominantly focused on land trading to a business predicated on delivering our stated medium-term target of 1,000 homes per annum.”