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L&Q takes the tiller in Barking

LQ-Barking

12 March 2016 – by Alexander Peace

Housing association L&Q has taken over the delivery of one of east London’s biggest housing schemes from Bellway Homes.

Barking RiversideHERE

Plans for Barking Riverside will see 10,800 homes delivered on 442 acres through a joint venture with the Greater London Authority.

The joint venture, known as the Barking Riverside Partnership, is 51% owned by L&Q and 49% by the GLA, which will share the cost of land preparation and planning. The entire scheme will have a gross development value of more than £3bn.

L&Q will then have the option to buy about 50% of the scheme as it comes to market and to develop all of the affordable homes, which could be around 33% of the total.

Bellway will retain the option to buy 25% of the land once it is ready for development.

The remaining land, in addition to any option not taken up by L&Q or Bellway, will be sold on the open market.

There are already about 1,000 homes on the site. The scheme originated in 1994 as a partnership between Bellway, English Partnerships and Barking and Dagenham Council.

L&Q said it intends to quadruple the rate of housebuilding at the scheme to 600 a year.

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“With L&Q coming in the way it is, it enables Barking Riverside to be built out much more quickly, because we effectively deliver a wider range of tenures,” said Jerome Geoghegan, director of development at L&Q.

He said L&Q’s general business model was to provide a mix of 30% private sale, 30% private rent, 20% submarket rent and 20% shared ownership, but this varied scheme by scheme.

L&Q will buy out Bellway from the partnership and incur some existing costs, such as section 106 agreements.

It has also agreed to pay £70m towards the £263m extension of the London Overground to a new station at Barking Riverside, which is set to complete in 2021.

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