Four eye housing PFI

by Brian Warner

Four groups are hoping to unlock a privately financed social housing deal in south London, worth up to £130m.

The deal, for Lewisham borough council, centres on refurbishing stock in the Brockley area.

The line up features joint ventures between contractors and housing associations. It is: Homes for Lewisham (Willmott Dixon/Circle 33); Brockley Partnerships (Wates/Hexagon); Partnership for Improvement (United House/Hyde); and B3 (Laing/Pinnacle).

The council is so far undecided if it will ask two of the four to work up best and final offers or join the increasing number of PFI clients opting to go straight to the preferred bidder stage in a drive to speed up the whole process.

The quartet of bidders have until early in the new year to return tenders, with Lewisham set to announce the final winner next June or July.

Depending on the way final negotiations go, a start on site could be made around October 2003.

The deal involves upgrading 2,000 council homes on estates and streets. The scope of work is wide and includes construction and refurbishment, landscaping and both property and facilities management services.

The deal will be let as a 30-year management contract, worth between £110m and £130m over the concession period.

The contract is one of 12 that feature in the second wave of PFI social housing projects, covering London and the South East, the Midlands, West Yorkshire and the North West.