Interserve has been chosen to build the latest phase of the £250m Old Vinyl Factory regeneration scheme in west London.
The high-profile deal marks the latest step in the contractor’s push into the property sector, coming on the back of last year’s win on Dalian Wanda’s £900m One Nine Elms scheme.
The Old Vinyl Factory is developer U+I’s multi-phased regeneration scheme, which includes 630 homes and 750,000 sq ft of commercial and leisure space.
Interserve will build the second phase, known as the Material Store, which will feature 189 homes for rent. It is being developed jointly by Hub and Bridges Venture.
Hub development director Steve Sanham said: “[The Material Store] will offer renters the convenience of being 21 minutes from Bond Street as well as being a stone’s throw from Heathrow and the M25.
Hub bought the development for £9m in July last year from Development Securities and Cathedral, which have since merged to form U+I.
The masterplan for the scheme was given planning permission in April 2013.
The first phase, called the Gatefold (pictured below), is being built by Willmott Dixon’s private rented sector business, be:here, in partnership with Invesco. Construction of the Gatefold is under way; it will include 133 homes as well as commercial space.
Willmott Dixon Gatefold Building Hayes London
In 2014, Interserve said it was “diversifying its revenue sources” by growing its property development capability.
“Part of our strategy is to combine our investment, development and project management skills to finance and deliver selective private sector commercial developments,” it added.
The firm bagged the One Nine Elms contract in a joint venture with China State Construction Engineering Corporation.
However, it is understood that a contract has not yet been signed between the JV and the Chinese client Wanda One, a subsidiary of property behemoth Dalian Wanda.
Interserve was also in the running for Sellar Property Group’s 180,000 sq ft residential building in London Bridge, but lost out to Skanska, as revealed by Construction News in December.
Once complete, the building will join neighbouring landmarks the Shard and the News Building, known collectively as the London Bridge Estate.
It is understood the construction value of the project is currently set at £80m, but this could rise to £100m.
As part of the deal, Hub and Hillingdon council have agreed that Interserve must provide 1600 weeks of employment and training for local residents.
This could include apprenticeships, paid work experience or supply chain involvement.
Hub said development director Steve Sanham said: [Interserve] shared our commitment to developing skills and delivering opportunities for young people through construction apprenticeships.”