Miller Construction has reached financial close on a £78m housing construction project in North Tyneside.
Through the joint venture, Solutions 4 North Tyneside (S4NT), Miller and its investment partner Equitix will develop 924 new-build and refurbished housing units over three years. The accomodation is designed for older residents, under the slogan 'Quality Homes for Older People'.
Work begins immediately and will be carried out across 26 sites. Solutions 4 North Tyneside will carry out the refurbishment and construction work and will maintain responsibility for cleaning, repairs and maintenance over the 28-year contract. Miller is providing construction services and Lovell is signed up for facilities management.
The first of the 16 refurbished and 10 new-build schemes will be completed by February 2015, with the final phases due to be concluded in 2017 for North Tyneside Council.
The total value of the services being provided by S4NT over the 28 year life of the programme will hit nearly £300m.
The project is the first private-public partnership deal that Miller has financially closed through a bond financed structure. It capitalises on a six-year relationship between Miller and Equitix – investors in infrastructure on behalf of UK Local Authority and European corporate pension funds – who have worked together on a number of other projects.
Miller Construction chief executive Chris Webster said: “We have a track record of delivering high quality and best value community-based projects and have a strong geographic presence in this region with on-going projects such as Stephenson Quarter in Newcastle and Queen Elizabeth Hospital in Gateshead. This latest scheme is in line with our strategy to provide end-to-end property solutions – to not just build, but to fund and provide ongoing care for our clients’ properties and estates.”