Galliford's jv partner sells stake for £3.6m

Galliford Try's jv partner to develop the former Fairfield Hospital site near Letchworth, Bedfordshire, has sold its 50% share of the jv for £3.6m cash.

Developer Wiggans has sold its stake in Fairfield Redevelopments, the jv between Galliford and Wiggans, to developer Linden, claiming that the proceeds will be used for "working capital and to reduce the Group's indebtedness".

David Calverley, chief executive of Galliford Try said: "We have collaborated with Linden on a number of residential projects, and are currently working with them on a joint development in Mill Hill. Their acquisition of this interest clearly endorses the potential of the development."

Fairfield Redevelopments purchased 18ha of land at Fairfield Park near Letchworth, from Wiggins on the 5 August 2002. Construction of 853 homes on the site was due to start in January 2003 and last for four years.

Calverley added: "Having recently secured all the outstanding consents to permit development of the 18ha site to proceed, construction of the roads and other infrastructure works is now commencing, and the first tranches of the site to be sold on to the contracted housebuilders are expected to complete in the autumn of this year."