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Laing O’Rourke signs £2bn offsite partnership with Stanhope

Laing O’Rourke has signed a partnership with developer Stanhope that could see £2bn-worth of schemes developed using offsite methods over the next five years.

The partnership, which also includes housing association Network Homes, plans to identify, develop and build out two major projects a year in London and the South-east in a bid to speed up housebuilding in the region.

The JV’s first scheme will be a £200m regeneration of a former industrial estate in Southall, west London, which will see around 550 homes built.

Unlike the traditional developer model in which developers progress sites then hire construction firms, Laing O’Rourke, Stanhope and Network Homes will take on the new projects as a JV from the start.

The regeneration of the site next to Southall station will include both build-to-rent, market sale and 180 shared ownership and affordable homes, alongside retail, commercial and office space.

Laing O’Rourke’s Steetley offsite factory in Nottinghamshire (pictured) will be used throughout the construction, including for the development’s modular bathrooms, balconies and pre-made panels.

The JV aims to submit a planning application for the project in spring, ahead of starting construction in early 2019 for a completion date of mid-2021.

CN understands the partnership is already assessing a number of other sites across the capital, with Stanhope and Network Homes also looking at bringing Laing O’Rourke onto schemes currently in their pipeline.

Stanhope chief executive David Camp said: “This alliance between a major private developer like Stanhope and a leading housing association like Network Homes is the only way we are going to solve London’s housing crisis by delivering high-quality new homes cheaply and efficiently outside the conventional structures which have failed.

 “We need to disrupt the market to achieve the ambitious goals for new and affordable housing set by the mayor of London and the government.”

Laing O’Rourke chief executive Ray O’Rourke said: ”Using Laing O’Rourke’s DfMA 70:60:30 offsite manufacturing capability, the project will see efficiency and certainty of delivery that is needed both here and to get a different result for the housing market across London and the south-east.

”The success of this approach can be evidenced on projects like Two Fifty One at Southwark, Imperial College’s residential towers at White City or the high-end Clarges residences in Mayfair.”

Readers' comments (3)

  • "Unlike the traditional developer model in which developers progress sites then hire construction firms, Laing O’Rourke, Stanhope and Network Homes will take on the new projects as a JV from the start."

    Well done, and lets hope that many others follow suit!

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  • will end in tears

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  • Scale up the projects and they will succeed.

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