Thurrock Development Corporation Structures Unique Joint Venture to Address Property Market

Thurrock Thames Gateway Development Corporation has created a pioneering agreement in order to ensure the continued creation of housing in the face of a weak market.

The deal, which mitigates the front end costs to the developer, transfers nearly 3.5 acres of land without payment, on the basis that the return on the Development Corporation’s investment will be delivered when the new homes are sold. 

Following a competitive tender process the Development Corporation has entered into the innovative joint venture with Bellway Homes and registered social landlord Family Mosaic.

The consideration paid to the Corporation will be a percentage of the sale price of the individual house units, with a guaranteed minimum land price after a prescribed period. The agreement also provides a land price discount mechanism to reflect the fact that public sector social house grant funds are unlikely to be available for the affordable housing element of the development. 

The site, at Schoolfield Road, West Thurrock, extends to 3.47 acres, with a newly created primary school nearby.  Planning permission has been obtained and construction will begin this summer.  On completion, the development will provide 89 units, 27 of which will be affordable.

Commenting on the venture, Thurrock Thames Gateway Development Corporation’s Chief Executive, Niall Lindsay said:  “Thurrock is unusual in that, due to its geographical location and strong transport connections, the value of commercial land is exceptionally high.  We acquired the land in order to preserve the site for housing in accordance with the change in land use patterns in this location as prescribed in the Development Corporation’s Master Plan.

“By adopting a new and more flexible approach as to how the land transaction is structured we have been able to enter into an agreement and bring forward the development to create much needed housing in a continually improving residential location.”

Jason Honeyman, Managing Director, Bellway Homes Thames Gateway, commented: "Bellway is delighted to have entered into this innovative agreement with the Development Corporation and Family Mosaic which ensures the delivery of this exciting scheme and which continues to underpin Bellway's long term commitment to delivering new homes within Thurrock."

Family Mosaic Development Director, Dick Mortimer added: ''I am delighted that we were able to invest in the Schoolfield Road project. Thurrock is a key part of the Thames Gateway and Family Mosaic is committed to the provision of housing in the area.”