Morgan Sindall Investments has agreed a joint venture with supported living developer Ashley House.
The contractor’s investment division will take a 50 per cent stake in the JV known as Morgan Ashley Care Developments at a cost of £4m. The new business will take on the majority of pipeline developments from Ashley House’s housing division.
Explaining the reasoning behind the JV, Ashley House said that as a “relatively small development company” it had racked up a “significant pipeline of schemes”.
The delivery of these projects had taken longer than expected, Ashley House said. It hopes with the JV will “accelerate and grow its pipeline of extra care and care scheme developments”.
Morgan Sindall managing director Lisa Scenna heralded the move as a further example of the contractor’s efforts to move into the care sector.
“The joint venture with Ashley House is a key step in our focus to grow our business in the increasingly important and active extra care sector and we are excited to have found in Ashley House an experienced developer as our partner,” she said.
“Together we can grow the pipeline to deliver much-needed housing for elderly people.”
Last month Morgan Sindall subsidiary Lovell revealed a £250m deal to build nearly 1,000 houses for the Ministry of Defence at an accelerated handover rate of 20 homes a week.