Balfour Beatty has signed an agreement with the London Legacy Development to construct and finance the new East Wick and Sweetwater housing development project at Queen Elizabeth Olympic Park in East London.
As part of the development deal, Balfour Beatty Investments will provide up to £35m of equity over eight years, representing 50% of the total required for the project.
The East Wick and Sweetwater housing project will take place in various phases over the eight-year period.
Construction is expected to generate about £400m of revenue and will be delivered by the company’s UK building business.
As a 50:50 joint venture with Places for People (PfP), the project is expected to create two new East Wick and Sweetwater neighbourhoods with up to 1,500 homes, including 450 affordable homes, 530 houses for private sale and 500 private rented sector homes.
PfP, which will manage sales and letting, will provide accommodation and operational services and also take ownership of the affordable housing.
Located in the north-west of the park next to Hackney Wick, East Wick will hold up to 850 homes, including townhouses, mews, studios and flats, as well as a new nursery.
Sweetwater is located in the south-west of the park near Old Ford and the Copper Box Arena, and will provide up to 650 homes. The site will have studios, apartments and family homes with private gardens, a new nursery, a library and health centre.
The communities will both have a range of shops, restaurants, offices, workshops and new, public spaces.
At the peak of construction, around 50 apprenticeships will be created along with 350 construction jobs.
Balfour Beatty Group chief executive Leo Quinn said: "This project marks our entry as an investor and developer into the UK’s regeneration and housing sector.
"I look forward to continuing our strong partnership with the London Legacy Development Corporation to ensure that commitments made as part of the London 2012 Games are delivered by not only creating new communities but also new jobs, and apprenticeships for young people wanting to join the growing infrastructure sector."
Image: East Wick and Sweetwater will have shops, offices, workshops and public spaces. Photo: courtesy of London Legacy Development Corporation.