Galliard teams up with US investor to build €1.3b of UK residential

London-focused residential developer Galliard Homes has established a joint venture with privately held investor Cain Hoy Enterprises to invest up to £225 mln (€285 mln) in new UK residential projects over the next three years.

Cain Hoy and Galliard Homes will contribute £225 mln to a new 50:50 partnership, which will be known as Galliard Developments and will focus on regeneration projects in the South East of the UK.

Deutsche Bank is providing a three-year corporate facility to Galliard Holdings that will be used towards the Galliard share of the equity funding for the new joint venture.

These arrangements will facilitate the construction of projects with a combined gross development value of over £1 bn and will be in addition to the 4,000 units being constructed by Galliard Homes at present.

The first project to be funded through the new venture will be 2 Millharbour, a joint venture with Frogmore near Canary Wharf. The companies have already exchanged contracts for the purchase of the site which has planning potential for up to 900 luxury apartments together with ancillary facilities.

'The market in and around London remains robust and is underpinned by a shortage of properties, strong economy and international desirability,' said Stephen Conway, CEO of Galliard Homes. 'This significant investment will enable Galliard to expand our pipeline of new developments over the next three years in a focused and opportunistic manner, building on the success of its schemes to date.'

Jonathan Goldstein, Cain Hoy’s head of European investments, added: 'Galliard’s proven ability to deliver popular, high quality, profitable developments, particularly as part of regeneration projects, makes it an attractive target for investment and a valuable joint-venture partner. Our property investment expertise and financial firepower, combined with their strong development team, put us in an exceptionally strong position to deliver solid returns.'

Founded in 1992, Galliard Homes is currently London’s largest privately owned residential developer. It specialises in regeneration projects and typically builds and sells new homes located on brownfield land, priced from £250,000 up to £1 mln.

Headquartered in Greenwich, Connecticut, USA, Cain Hoy Enterprises is a private investment company financed with permanent capital that owns a diversified portfolio of operating businesses and financial assets.