Drayton garden village, middlesex
Drayton Garden Village is a significant development Inland Homes has been managing for several years on behalf of DGVL. It is a 31 acre site, with planning permission for 773 residential units and 53,000 sq ft of commercial space, as well as community areas including several village greens. The development has provided the opportunity for Inland Homes to demonstrate their large scale housing construction capabilities, as well as to utilise environmentally friendly techniques and features, for which it has been recognised.
Location Drayton Garden Village, Middlesex
Since the purchase of the land in 2009, Inland Homes have increased their profit share on the project from 35% to the maximum 90%. Inland obtained planning consent within 20 months of acquisition for 773 residential units plus employment and community space with just 8% of the homes being provided as affordable housing, a significant reduction from the 50% target set by the London Plan at the time and, as such, maximising the value of the land. They have co-ordinated and managed the different areas and aspects of the site, including the sale of serviced plots to other property developers, as well as building a number of the homes for DGVL. This strategy has proved successful, enabling a staggered release of cash throughout the development process, and will be repeated in future projects.
At Drayton Garden Village, the Group has accessed the growing private rented sector (PRS), through an agreed bulk sale of 205 units to an institution, a strategic move that will be repeated in future projects. The government is encouraging investment in PRS, to increase the supply of privately rented homes for the expanding rental market. Inland Homes is seeking to diversify the risk profile of its projects and bring in large numbers of early sales.
Inland Homes is managing the building of 387 homes within Drayton Garden Village. Of these, it is overseeing the whole process of building and selling 75 houses and apartments, and has been contracted to construct 107 units by Paradigm Housing Association, and heads of terms have been agreed for a further 205 units to be constructed for PRS. These bulk sales can help release cash during the project, and de-risks the market risk.
The 75 units being built on behalf of DGVL have generated significant interest from buyers. The first 32 units released sold above market expectations, and at the release of the next group of homes, there was a queue of prospective buyers waiting to access the show homes. This scene, unheard of since before the financial crisis, was a testament to the desirability of this attractive development.
The project has progressed well against plans, aided by the productive relationships that DGVL and Inland Homes have established with their partners and contractors. A significant achievement at this site was securing a contract with E.ON for the design, construction and maintenance of the energy centre. A fifteen year lease has also been secured with Sainsbury's, benefiting the residents and providing a source of income. The external landscape has been completed following a productive collaboration with the landscape architects and contractors, and many of the homes have been built. A phased move in of residents to completed areas has seen 250-300 families settle into their homes, whilst the construction of the remaining homes, to bring the whole project to completion, is expected to conclude in 2017.
Homes sold during the year
Heads of terms agreed on a bulk sale to a PRS institution