Tenders out for £40m east London housing

Contractors and developers are being invited to prequalify for a mould-breaking housing redevelopment deal in east London, valued at £40m-plus.

The Tower Hamlets council project centres on the Crossways estate and, in an unusual move, bidders will be asked to market houses as well as take responsibility for design, construction and financing.

But the deal will not be among a third wave of privately financed social housing projects which the government is set to approve shortly.

Julia Farr, the council's Crossways project manager, said: "The scheme is Public Private Partnership rather than a Private Finance Initiative and we will be looking for cross-subsidy through profits from land and housing sales."

The project includes building about 150 new houses, of which up to 50% could be for sale.

And among 300 houses to be refurbished, including homes in three tower blocks, one or more of the blocks will sold on the private market.

The estate was built in a former railway cutting and the project might also feature raising the site level in line with the surrounding area to improve access and maximise development potential.

Potential bidders have until 7 August to register interest, with the council planning to shortlist six outfits to pitch for the scheme.

A preferred bidder is expected to emerge in November 2001, with a start on site due early in 2003.