Calico Group has appointed Forrest as its partner in a new £88m joint venture
The new firm will be called Ring Stones, and will be a subsidiary of Calico Homes, carrying out work both for Calico and for other clients.
It aims to secure £88m in revenue over the next decade, with investment work in Calico’s properties and housebuilding programmes totalling over £45m. It is expected to focus on low-cost investment and building work, trading commercially in the open market.
Calico’s Direct Labour Organisations programme for responsive and void works will not be affected.
30 new staff are to be recruited, with Ring Stones employing the labour force directly.
The procurement process was handled by Valueworks, with Calico customers involved in the process and on the selection panel.
Calico chief executive Michael Birkett, said: “Ring Stones will increase our efficiency through significant VAT savings and direct control of labour and supply chain costs.
“Additionally, we anticipate that a more competitive cost base and a potential use of commercial profits will ensure that we are able to continue to develop new housing supply, particularly post- 2015 when the availability of grant subsidy may be squeezed again.”
Forrest CEO Lee McCarren, said the joint venture would “provide Calico with the means to access additional funding to improve the homes of thousands of its tenants.
“Ring Stones will be based in the heart of Calico’s communities and employing people from within those communities, helping to ensure that its investment supports local supply chains and employment.
“From an operational perspective, Calico’s on-the-ground understanding of the issues which affect its tenants will be invaluable to Ring Stone’s teams as they work in across Pennine Lancashire over the next decade.”