Staminier acquires stake in Development Land and acquires majority interest in Eco-friendly Housebuilder
LONDON: The Board of Staminier has established a new subsidiary, Eco-Space 41 Ltd in order to acquire the business and assets of a low cost, fast build and energy efficient house building business.
As part of the same transaction It is also acquiring an associated company that owns a fully complete Show House built on the BRE campus site in Watford that has been tested to ensure compliance with UK Building Regulations. An ES41 Home of this kind can be built in just 41 days, is significantly cheaper than traditional build and more energy efficient than conventional homes. The Company can produce homes (both flats and houses) to pretty much any design that developers wish.
As part of the deal, the Company will also acquire an interest in a special purpose vehicle that has the rights to obtain a development site in Hertfordshire where it is hoped to obtain a favourable decision on a planning application to build a first phase of 14 luxury homes within the next six to twelve months.
The interest will be between 20% and 30% depending on what proportion of the planning costs the Company wishes to contribute. In the event that planning permission is granted, the Company expects the value of its interest in the special purpose development vehicle to increase significantly as a result of the planning gain, as well as to generate a margin of approximately 15% from building the luxury homes on a cost plus basis. If planning permission were to be applied for and granted for a subsequent phase then the anticipated profits would of course be larger.
The business and assets being acquired by the Company also include other potential developments, one of which is a possible 150 home site in Central Bedfordshire on council-owned land.
There is a major shortage of affordable homes in the UK at the moment, and the Board believe that the Company can play a meaningful role in helping to address that shortage.