Urban Splash eyeing entry into London housing market

Urban Splash house

Manchester-based property group Urban Splash is reportedly poised to acquire Brick by Brick, the housebuilding arm of Croydon Council.

This would see the group’s first entry into the London market, fulfilling a long-held desire by Urban Splash to achieve a foothold in the capital.

Trade publication Property Week reports that the deal is in final due diligence and is expected to be discussed by the council’s cabinet on May 17.

If the deal goes through, Urban Splash is expected to acquire all of Brick by Brick’s existing assets and its development pipeline, and wipe out most of the local authority’s Brick by Brick debt.

Last November the council declared itself bankrupt, the first London local authority to do so in 20 years.

However, in March this year, it managed to produce a balanced budget which lifted financial restrictions, and it was given a £120m bailout by the Government.

Hamida Ali, leader of Croydon Council, said the council still needs to make savings “to live sustainably and within its means for the long term”.

She added: “That means we must continue to keep a tight rein on our finances, keep working closely with the government-appointed improvement panel and deliver our improvement plans.”

An independent report on the council last year said Brick by Brick had “significantly underperfomed” and the council had been lax in its management of the organisation, which it had loaned more than £200m.

Earlier this year the council revealed it was in talks with an unnamed bidder regarding Brick by Brick.

The organisation is involved in 29 schemes, creating 930 homes.

Urban Splash is ramping up its new modular build technology through its House subsidiary, with several developments throughout Greater Manchester and the Liverpool City Region .

Croydon Council and Urban Splash have been contacted for comment.

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