Barratt joint venture with Swindon Borough Council
BARRATT DEVELOPMENTS PLC
(the 'Company')
Barratt enters into a joint venture with Swindon Borough Council
Barratt Developments PLC ('Barratt') is pleased to announce that it has entered into a 50:50 joint venture with Swindon Borough Council to develop approximately 250 hectares at Wichelstowe, South of Swindon. The scheme will deliver around 2,670 new homes over the next 20 years and includes two primary schools, a secondary school and an extensive area of open space.
Swindon Borough Council will be contributing the land and the infrastructure already in place and Barratt, through its main trading company, BDW Trading Limited, will fund 100% of the remaining site-wide primary infrastructure, including a portion of affordable housing. Barratt will deliver serviced parcels for development in five phases and is also the exclusive provider of the development and management services for the site.
David Thomas, Group Chief Executive of Barratt said: "We are delighted to be selected by Swindon Borough Council as the preferred partner to deliver much needed high quality new family housing for Swindon. Our shared vision for Wichelstowe is to design and create neighbourhoods which will be a pleasure to live on and will enhance the local communities for years to come".
Councillor Toby Elliot said: "I am very pleased that the Council is entering into a joint venture with Barratt to deliver the Wichelstowe Development. This will move us a step closer to realising what is one of the Council's key strategic programmes".
Notes to editors
1. Maximum peak funding commitment from Barratt is £15.7m in FY18.
2. The total consideration payable by Barratt is up to £183m comprising 50% of the value of the build, 100% of the remaining primary infrastructure, initial capital contribution and the guarantee, which the Company is providing. The land will be drawn down over a period of 20 years in five phases with the initial contribution and guarantee being provided on entering the transaction. Repayments of the cost of funding the building works, primary infrastructure and S106 payments will be via a distribution arrangement.
3. Gross assets of the JV are £70.3m, of which Barratt's interest is £35.1m.
4. Barratt's interest in the joint venture will be represented by the West Region Regional Managing Director.
About Barratt
Barratt is the nation's leading housebuilder operating across Britain with 27 housebuilding divisions delivering 17,395 (total completions including joint ventures) homes during its financial year ended 30 June 2017. Residential developments are delivered by three housebuilding brands - Barratt Homes, David Wilson Homes and Barratt London and commercial developments by Wilson Bowden Developments. Barratt is the only major housebuilder to have been awarded the Home Builders Federation maximum five star rating for eight consecutive years, has won more NHBC Pride in the Job Awards than any other housebuilder for 13 years in a row and has won more Built for Life Accreditations than all other housebuilders combined.
About Swindon Borough Council
Swindon Borough Council was formed in 1997 and is the local authority of the Borough of Swindon in Wiltshire. It is a unitary authority, having the powers of a non-metropolitan county and district council combined. In its capacity as a district council it is a billing authority collecting Council Tax and business rates, it processes local planning applications, it is responsible for housing, waste collection and environmental health. In its capacity as a county council it is a local education authority, responsible for social services, libraries and waste disposal.
For further information please contact:
Barratt Developments PLC
Jessica White, Chief Financial Officer 01530 278 259
Analyst/investor enquiries
Chloé Barnes, Head of Investor Relations 020 7299 4895
Media enquiries
Tim Collins, Head of Corporate Communications 020 7299 4874
Derek Harris, Head of Public Relations 020 7299 4873
Brunswick
Jonathan Glass/Wendel Verbeek 020 7404 5959
This information is provided by RNS
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