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Breyer and MITIE form A2Dominion JVs worth £150m

A2Dominion has formed to JVs to provide responsive repairs and void works to its 34,000 properties, valued at over £150m over the next decade.

The work, in London and the South East, will see Breyer B-Line, and MITIE partnering with A2Dominion for 10 years beginning on 1 April 2013, with a potential five-year extension.

The JVs have been named Pyramid Plus.

Andrew Evans, A2Dominion’s Executive Director (Operations), said: “Following a lengthy procurement process, we look forward to working with Breyer and MITIE to establish the new companies. The JV model is, we believe, a more efficient and cost effective delivery vehicle that will provide a first class service to our customers whilst, at the same time, offer opportunities to generate additional revenue streams.”

Tim Breyer, Managing Director of Breyer Group, said: “This is an innovative delivery structure which provides us with the opportunity to further enhance our collaborative approach and develop a model that is at the forefront of partnership working.”

Peter Griffin, director of social housing at MITIE, said: “We are extremely excited about the JV with leading housing provider A2Dominon. The venture will guarantee a high value of investment in its people, ensuring excellent customer service for the ten year life of the contract and beyond.”

The award of the contracts follows the successful completion of a comprehensive OJEU tender process, and the subsequent customer consultation and standstill period. For each of the JVs, A2Dominion will be the majority shareholder, with a 70/30 split agreed with the contractors.

A2Dominion will be the 70 per cent majority shareholder in both JVs, paying a fixed price for any work, with surpluses being shared by both parties and reinvested into work, employment and sustainability.

Over time, A2Dominion will look to extend the scope of the JVs to work for other clients, such as housing associations.

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