Transport for London says its property framework will kick-start a London-wide housebuilding boom, with thousands of private rented sector (PRS) units set to be delivered across the capital.
According to the AJ’s sister title Construction News, TfL director of commercial development Graeme Craig said there would be ‘significant opportunity for PRS’ on the first batch of sites it brings forward through its property partnerships framework.
Initially, TfL will bring forward 75 sites for development from the start of 2016, totalling 121 ha and delivering 10,000 homes over the next decade.
In a bid to deter opportunistic developers, TfL will not reveal the sites in its development pipeline.
Craig said: “We haven’t published a list to them, or anyone else, of all the sites that we have got. We don’t want to be in a position in which people are then looking to acquire interests adjoining our land.”
The organisation has set a target of raising £3.4bn in commercial activity by 2023 to reinvest into the transport network.
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Craig said TfL wanted to create long-term income streams, which could be delivered through PRS homes, and has moved away from a strategy of selling off land assets.
He added that there would be opportunities for TfL to bring forward larger sites for development alongside other public sector organisations that own neighbouring land.
“Part of the reason of having the London Land Commission is so that the public sector can look across to see [owners of land surrounding] the sites we are looking to bring forward, so we are then in a position… to understand how we can engage in land assembly in order to bring forward larger development sites.”
Mr Craig said 67 per cent of these sites will be within zones one and two but there will be future opportunities for development in zones three to six, with details of sites in the next phase set to be added in spring 2016.
Construction News revealed in May that 16 companies had been shortlisted for the property framework (see box), which is worth up to £3.6bn in total.
Firms including Balfour Beatty, Capco, Great Portland Estates and Mace are battling it out for a chance to be on the framework, with the successful partners revealed in January.
They will then be able to enter mini competitions for specific sites, with bids judged 60 per cent on the quality of the scheme and 40 per cent on value.
“It is not necessarily about who is offering the most money,” Mr Craig said.
“It’s about who brings forward the best scheme – I’m keen we concentrate on long-term value rather than simply focusing on short-term cash.”
The director said there was also scope for SMEs and self-builders to work with TfL on some of its smaller infill development sites.
“TfL is not just going to be working with the big developers in London… and we have enough sites to be able to do that,” he said.
“But we still need to understand the quantum and location [of these sites, after which] we will work through the procurement mechanism in a way that will allow these companies the opportunity to work with TfL.”
Mr Craig said the scale of what TfL was doing was “enormous” and, as a result, the organisation would have to double its 15-strong development team by next year.
- Balfour Beatty
- Barratt Homes
- Berkeley Homes
- British Land
- Canary Wharf Contractors
- Development Securities/Notting Hill Housing
- Great Portland Estates
- Land Securities
- Mount Anvil/Hyde Group
- Taylor Wimpey