The housing minister has announced details of a £45m deal that will deliver 190 homes for the private rented sector.
This is the third deal signed through the government’s £1bn Build to Rent scheme, under which developments receive a share of the funding pot.
Build to Rent offers loans to developers to cover costs for land, construction or management and was set up to deliver 10,000 homes from 2015.
The news comes days after Construction News revealed that 26 developers had dropped out of the scheme’s first phase.
There were originally 43 developers on the first phase shortlist, announced in April 2013. This week, the Homes and Communities Agency published a fresh shortlist for round one that included just 18 developers for 20 housing schemes.
Under the terms of today’s deal, housing minister Kris Hopkins revealed a joint venture between Mill Group and Bovis Homes would receive £8.7m from the Build to Rent fund.
Bovis Mill Group has also secured a senior debt facility from RBS, bringing the deal total to £45m.
The team will build 110 houses and 80 apartments across six sites by the end of 2014. They are:
- Wickhurst Green, Horsham – 46 homes
- Charlton Hayes, Filton, Bristol – 43 homes
- Coopers Edge, Brockworth – 31 homes
- Oak Tree Place, Hedge End, Southampton, Hampshire – 30 homes
- Great Kneighton, Trumpington, Cambridge – 27 homes
- Aspen Park, Hemel Hempstead – 13 homes
The £1bn fund was split into two rounds, with the first round originally due to receive £700m and the second round to receive the remaining funding.
The first round applicants will now share £300m, with the remainder of the pot to go to schemes in the second phase.
The development by Bovis Mill Group was not on the original Build to Rent shortlist. The scheme was one of two that Bovis had originally intended to build using Build to Rent.
However, speaking to Construction News Bovis Homes chief executive David Ritchie said it would fund the second scheme with a separate investor rather than through Build to Rent.
Mr Hopkins said: “With more sites being considered for a share of our £1bn Build to Rent fund, we’re well on track to have work under way on 10,000 homes for rent by 2015.”
Mill Group chief executive David Toplas added: “This new joint venture forms a key part of our strategy to build a significant private rented sector portfolio and demonstrate our commitment to structure, source, finance and invest in the right opportunities.”