You are viewing 1 of your 1 free articles
Croydon Council development company considers timber frame factory
Croydon Council’s wholly owned development company is looking at setting up its own timber frame business.
Brick by Brick, which has a target of building more than 1,000 new homes across the London borough by 2019, thinks the company could help with the future delivery of its pipeline.
Colm Lacey, managing director and chief executive of Brick by Brick, said that the idea was currently in its “exploratory stages”.
At least 80% of the development company’s programme is on small-scale, brownfield sites and so far it has predominantly been delivering them with buildings made from timber frame panels.
“Rather than repeatedly buying the same framing solution from the market, we are investigating whether we can deliver this element of the construction process ourselves and at the same time open up a commercial avenue for us to be able to supply other developers,” Mr Lacey said.
READ MORE
“Essentially, we’re looking for a more cost-effective way of supplying our superstructure needs, while also gaining a potential revenue benefit and promoting local employment opportunities.”
The news comes as Tower Hamlets Council revealed a number of councils in London are looking to set up a modular housing company.
Mr Lacey said Brick by Brick has currently got planning permission for 1,300 homes, with a pipeline “of around the same size”.
The company’s business plan, presented to a Croydon cabinet meeting at the end of last month, revealed that it thinks it will require £164.8m funding in 2018/19, made up of £123.6m in borrowing from the council and £41.2m of equity investment.
The cabinet report makes it clear that after 2018/19 the company “anticipates that it will become self-financing, with revenue from sales of housing sufficient to cover ongoing development expenditure”.
The interest charged on loans is projected to generate £17.7m for the council, and the company is forecasting a profit of £21m on its existing developments. Its target is for 50% of its homes to be affordable, with half of these being for affordable rent and the other half shared ownership.
Shifa Mustafa, executive director of place at Croydon Council, told Inside Housing that the council is also in talks with the company about whether it could purchase some homes to help house key workers, particularly social workers, in the borough.
“Everyone [in London] is struggling to recruit social workers,” she said. “We are looking at something that will give us an advantage.”
