Many developers will be familiar with the concept of “golden brick” contracts, where the sale is completed when the construction of new dwellings being built on land has reached the stage that allows the transaction to be zero rated for VAT purposes.
The joint venture will form part of a new community at Stanton Cross, on the edge of Wellingborough, Northamptonshire. In total, Stanton Cross will deliver over 3,650 new homes together with leisure, retail and office space, new schools, public parks and open spaces.
Bovis has transferred assets totalling £102.6m into the joint venture. Each joint venture partner contributed equity of £33.1 million. The existing Homes England loan of £36.4 million was transferred from Bovis to the joint venture.
Gregg Fitzgerald, Chief Executive of Bovis Homes Group, commented,
‘We are very pleased to have formed this partnership with Riverside, one of the UK’s leading providers of affordable housing and look forward to creating this exciting new community at Stanton Cross with them. We announced the development of our Partnership Housing Division earlier this year, and this is a great example of our land led strategy and working partnership, in particular with housing associations, on our larger developments.’
The Owen White team was led by directors Phil Lawrence and Andrew Hayward.
Phil Lawrence said,
‘We are delighted to have been part of this exciting project. We are sure that the new joint venture will be a great success.’
If you would like to discuss any property or joint venture issues please contact the Property Joint Ventures Team