Urban&Civic acquires L&Q’s strategic land business
L&Q Group has sold its strategic land business, L&Q Estates, to Urban&Civic for an undisclosed price.
L&Q identified the master developer as a logical purchaser to “keep faith with the intention of boosting housing output across South East England and into the Midlands”.
The acquisition, which is expected to complete shortly, will allow Urban&Civic to expand its portfolio into Milton Keynes and “widen its commitment to strategic interventions in high growth locations”.
L&Q Group has sold its strategic land business, L&Q Estates, to Urban&Civic for an undisclosed price.
L&Q identified the master developer as a logical purchaser to “keep faith with the intention of boosting housing output across South East England and into the Midlands”.
The acquisition, which is expected to complete shortly, will allow Urban&Civic to expand its portfolio into Milton Keynes and “widen its commitment to strategic interventions in high growth locations”.
L&Q is one of the UK’s leading housing associations, owning and managing more than 105,000 homes.
L&Q Estates, previously Gallagher Estates, was purchased by L&Q in 2017 for around £505m to unlock land for housing development on a regional basis. It has since delivered thousands of homes across the Midlands and South East.
However, L&Q’s corporate strategy is now focused on prioritising investment into the core affordable housing aspect of its business and targeting growth in London and Greater Manchester.
As part of its strategy, the business has also appointed BNP Paribas Real Estate to undertake a review of its £1.2bn private rented sector portfolio.
Waqar Ahmed, executive group director of finance at L&Q, said: “We’re immensely proud that since acquiring L&Q Estates in 2017, we’ve enabled the delivery of more than 11,300 new homes, of which 1,800 have been built by L&Q.
“However, our long-term strategy is focused on ensuring that every L&Q resident has a safe and decent home and access to high-quality services they can rely on. This deal will help us meet this goal by simplifying our business and generating additional revenue which will be reinvested into our existing homes and services.
“L&Q remains committed to building the affordable homes the country so desperately needs, but this deal signals a longer-term ambition to concentrate future growth in our core areas of Greater London and Greater Manchester, rather than pursue strategic land opportunities across the wider South and Midlands. This will allow us to focus our resources on areas where housing need is the greatest, and where we are in the strongest position to provide responsive, local services that offer the best value for residents.”
Urban&Civic chief executive Nigel Hugill said: “The purchase presents a singular opportunity to integrate complementary projects and expertise, while also expanding our portfolio into key target geographies, most notably Milton Keynes.
“It is simply infeasible to meet adequate housing targets in South East England without a greater contribution from strategic sites. The acquisition promises a step change for Urban&Civic and Catesby Estates as the new government looks at immediate means by which housing numbers can be lifted.
“Collectively, the enlarged group has gathered a lot of learnings to create best practice in amenity and landscape-led master development. I expect this knowledge and experience to prove invaluable in the changed political environment.
“We can also help inject new competition into the housebuilding process by encouraging the participation of an otherwise apparently inexorably reducing number of SMEs across a broader range of projects. Seeing is believing but the acquisition will enable us to push harder again on new amenity-led strategic housing development.”
Image: Wixams, Bedfordshire © L&Q Estates
