MJGleeson Regulatory News (GLE)

17 Apr 2007 07:01

Gleeson(M J)Group PLC17 April 2007 Tuesday 17 April 2007 MJ GLEESON GROUP PLC Financial close achieved on Stanhope Estate, Ashford PFI Gleeson (GLE.L), which is transforming itself into a specialist in housingregeneration, announces that its Chrysalis Consortium has signed Development andProject Agreements with Ashford Borough Council in Kent for the regeneration ofthe Stanhope Estate - importantly, Gleeson's first regeneration scheme in theSouth of England. Pursuant to the Development Agreement, Gleeson Homes & Regeneration South willundertake the development of 442 new homes, together with a commercial centrecomprising three retail units and a pub/restaurant, together valued at £50m. Thedevelopment will take place on 10 sites, in four phases, over five years. Thesplit of new homes is 70% (309 units) to be affordable (social rent and sharedownership) for sale to Moat Housing Group and 30% (133 units) for private sale. The Project Agreement covers the refurbishment, maintenance and management ofthe retained dwellings and public open space, together with the creation of anew Stanhope Community Centre. Pursuant to this Agreement, whose term is 30years, Gleeson's subsidiary, Gleeson Services, under its Powerminster brand,will provide facilities management services, valued at £23m. Through its PFI-focused subsidiary, Gleeson Capital Solutions, Gleeson createdthe Chrysalis Consortium to bid for this Housing Revenue Account (HRA)PFI-funded scheme. Gleeson's partners in the Consortium are the Kent-based MoatHousing Group, delivering housing management services, and Nationwide BuildingSociety, funding the scheme. Nationwide and Gleeson are partners in thesuccessful regeneration project at Grove Village in South Manchester, a £103meight year programme which was the first substantial Local Authority housingPFI, with a similar HRA structure to the Ashford PFI. Dermot Gleeson, Chairman, stated "When considering PFI-funded regenerationschemes, our ultimate aim is to secure long-term work for Gleeson Homes &Regeneration in new build housing for sale and for Gleeson Services ininstallation work and maintenance, whilst securing equity returns viaparticipation in the PFI investment. The Ashford scheme fully meets thoseobjectives. Now that Ashford is underway, Gleeson looks forward to building onthe success and high potential of its regeneration business in the North ofEngland by involvement in further schemes throughout the country." -Ends- Notes for Editors: In addition to the Stanhope Estate in Ashford, Gleeson is currently active atfive regeneration sites: Grove Village in South Manchester, Beswick in EastManchester, Norfolk Park in Sheffield, Cleveland Street in Liverpool, andNorthumberland Street in Liverpool. Four further regeneration sites, bringing the total to 10, are expected by theBoard to be active in the year to 30 June 2008: Cheshire Care Homes, NorthHuyton in Merseyside, Gorton Monastery in East Manchester, and St. Mary's inOldham. In addition, Gleeson is the preferred developer for the whole of theCity Centre South Zone in Liverpool (of which Cleveland Street andNorthumberland Street are parts), which potentially involves the development of1,000 acres in a programme extending to 2017. Photograph: A photograph of the Stanhope Estate, Ashford is available from Charles Ponsonbyat Bankside Consultants on charles.ponsonby@bankside.com. Enquiries: M J Gleeson Group plc 01252-360 300Paul Wallwork (Group Chief Executive)Chris Holt (Financial Director) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 This information is provided by RNS The company news service from the London Stock Exchange