UK Regeneration has signed a land deal with Nottingham city council and an exclusivity deal with Derby city council to unlock UKR’s private sector housing model.
Both deals were signed last Friday. Nottingham will pilot the first development, a £30m urban village of 200 homes, and Derby has been announced today as the second.
The Nottingham transaction was signed almost a year to the day since UKR first launched its plans for the 5-acre Sandfields site in Lenton at last year’s MIPIM event.
UKR has paid circa £3.5m for the site and will start work on site in September. The first homes will be ready by the end of 2014.
UKR has also struck a lock-out deal with the Derby Hospitals NHS Trust to acquire an 8-acre site at the former Derby Royal Infirmary. The scheme will comprise 300 homes, plus retail, restaurants and other amenities.
UKR is now seeking planning consent for the new urban village known as the Nightingale Quarter.
Jackie Sadek, UKR chief executive, said: “We’re addressing the housing problem with fresh eyes, starting from scratch. Regeneration must move into the private sector and not look for public subsidy.”
Work will start on site in Derby in November, with first-phase delivery due by October 2015.
UKR has developed a three-phase funding model with advice from Barclays and the completed development will be offered as an investment opportunity.
Jones Lang LaSalle advised UKR on valuation, planning and development and Innes England advised on site acquisition.
UKR’s model is to build private homes on in-fill sites for long-term rent. It aims to deliver 20,000 homes by 2020.
