L&Q sells strategic land business to London-based developer

Waqar Ahmed, executive group director of finance at L&Q, said: “Our long-term strategy is focused on ensuring that every L&Q resident has a safe and decent home, and access to high-quality services they can rely on. 

“This deal will help us meet this goal by simplifying our business and generating additional revenue which will be reinvested into our existing homes and services.”

L&Q, which operates around 105,000 homes, acquired Warwick-based Gallagher Estates in 2017 for around £505m. The business was amalgamated into the group’s development division in 2019 and rebranded as L&Q Estates.

Media reports have suggested L&Q’s deal with Urban & Civic is worth around £200m. However both organisations declined to disclose a figure when contacted by Social Housing. 

London-headquartered Urban & Civic, which was acquired by charity the Wellcome Trust in 2021, is aiming to expand into Milton Keynes as a result of the acquisition.

The firm said that its land-promoting subsidiary, Catesby Estates, will also benefit from expansion into “new target areas” and “strengthen market competition by progressing those sites which are made directly available to house builders once consent is secured”.

Nigel Hugill, chief executive of Urban & Civic, said that the acquisition would allow the firm to “push harder again on new, amenity-led, strategic housing development”.

He added: “The purchase presents a singular opportunity to integrate complementary projects and expertise, whilst also expanding our portfolio into key target geographies, most notably Milton Keynes.”