Hull City Council, UK, has formally signed contracts with Riverside to deliver the Hull Extra Care Housing private finance initiative (PFI) project.
The project involves the development of 316 extra care apartments and community facilities for vulnerable adults across three locations in Hull: Leads Road, Hall Road and Hawthorn Avenue. It is designed to enable residents to live an independent life in a socially supportive environment.
Riverside Care and Support Limited, a subsidiary of the Riverside Group, will provide the maintenance and housing management services. Wates Construction Limited, which has been advised by Global law firm Squire Patton Boggs, is the building contractor of the project.
The total project investment is estimated at £60 million (US$93.3 million). Riverside has raised £67 million (US$104.2 million) of private finance from Aviva, which has provided senior debt, in order to secure £80 million (US$124.5 million) of PFI credits from the National Health Service (NHS), repayable over a 25 year period.
The planning applications for the project were passed in September 2014 and building work will start on site early next year. Completion is expected in December 2016.
Councillor John Black, Portfolio Holder for Council Infrastructure and responsible for housing, stated:
"We are delighted the plans have been passed and Wates Living Space, construction partner for housing association Riverside, can begin building next year. This will compliment the regeneration taking place in Orchard Park, and Newington and St Andrews and even more importantly to our 10-year City Plan it will secure jobs, apprenticeships and training opportunities for the local communities."
Leann Hearne, Executive Director of Care and Support from Riverside, commented:
"Riverside has a long and very strong track record of providing housing and support to the community in Hull and our specialist staff are experts in their field. These three new developments will be modern, lively and will put independence and choice for their tenants at their heart."
Following the contract signing it is anticipated that building will start on the first site at Hawthorn Avenue early this year. This will be followed by the Hall Road facility and then the final facility in Leads Road. The developments will be completed over the period from the end of 2016 to spring 2017, when the final tenants will be in their new homes.