Creating a joint venture between a housing association and a commercial contractor

Members of our housing corporate and governance team acted for a Midlands housing association on the creation of a development joint venture (JV) with a commercial contractor in the West Midlands.

The JV involved a commercial subsidiary of the housing association and the contractor investing funds into a special purpose vehicle (SPV) to acquire and develop a series of sites for mixed tenure housing over approximately five years with an anticipated value in excess of £100 million.

The first site to be purchased was a large, abandoned, brownfield site with the costs of development for the site being met by the parties alongside political support and funding from local authorities. The SPV’s intention was to build around 300 new homes, which should bring much-needed housing as well as jobs and training to a chronically deprived area of the region and the country.

Our team supported the housing association on all aspects of this project including corporate and governance advice on the structure of the SPV, both parties’ investments in the SPV, and the registered provider’s own intra-group funding to facilitate the investment in the SPV.

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Penningtons Manches Cooper LLP