The signing of terms for affordable housing concludes the agreement-in-principle announced by the ODA and Government last month.
After the Games, the Village will create 2,800 homes and the agreement now reached will see Triathlon Homes purchase 1,379 of the homes to become available as affordable housing in legacy, including affordable rented, intermediate market rented and part-buy part-rent (shared ownership) homes, together with shared equity housing.
The pre-sale deal will see Triathlon Homes (a joint venture company established by First Base and housing associations Southern Housing Group and East Thames Group) invest £268.7 million into the Village. The investment includes a £110 million grant from the Homes and Communities Agency (HCA), equity from Triathlon Homes, and lending from a banking consortium. As previously stated, this funding is separate to the ODA’s budget and the remainder of the homes being built for the Athletes Village will be funded through the public-sector funding package announced by Government last month.
In the House of Commons today Tessa Jowell, Minister for the Olympics, made a Written Ministerial Statement confirming that she has issued a guarantee to the ODA enabling the deal to go ahead.
Tessa Jowell, Minister for the Olympics, said: 'I welcome the agreements between the Olympic Delivery Authority (ODA) and Triathlon Homes LLP for the purchase of 1,379 affordable homes on the Athletes' Village development. As the ODA itself has no significant sources of funding independent of Government and is expected to have a limited life span that many of its obligations are expected to exceed, beyond the lifetime of the 2012 Games, I have agreed to a Ministerial guarantee of the ODA's obligations.'
ODA Chairman John Armitt said: 'The Athletes' Village will deliver the legacy of thousands of new homes for Londoners and the affordable housing elements will ensure local people of all backgrounds can benefit from this new world-class development. Concluding the affordable housing agreements is an important step and with construction work on site making strong progress, the project remains on track.'
The Mayor of London, Boris Johnson, said: 'This is a very welcome landmark and complements the fantastic progress the ODA is making on the Olympic Park. The creation of affordable and high-quality housing in the East End is one of the most important parts of our legacy. Today's agreement brings us another step closer to thousands of Londoners benefiting and taking part in the creation of this thriving new district where they will live, raise a family, do business, study, and work.'
Housing Minister John Healey said: 'This deal is a prime example of how housing will receive a real boost from the Olympics and how thousands of Londoners will benefit from all types of affordable homes. These Olympic and Paralympic Games are not just about sport, they are about creating a legacy for communities in East London that will benefit people for generations to come.'
HCA Chief Executive Bob Kerslake said: 'The HCA’s grant has been made available through our National Affordable Housing Programme which we manage to increase the supply of affordable homes. Our funding means the Olympic Village will provide the widest possible choice of tenures to meet the diverse needs of residents of East London, an area that has been designated to support housing growth in the capital well beyond 2012.'
Elliot Lipton, Managing Director of First Base, June Barnes, Chief Executive of East Thames Group, and Tom Dacey, Chief Executive of Southern Housing Group, representing Triathlon Homes commented:
'Our aim is to create affordable, high quality homes for local people, to ensure a successful Olympic legacy for Stratford and the wider east London community after 2012. Triathlon Homes is a unique investment company with a long-term agenda to provide value for money for residents and our funders, and ultimately to have a positive and lasting impact on the area and its people.'
The Athletes' Village will accommodate athletes during the Olympic and Paralympic Games. After 2012, it will leave the legacy of new homes together with new parks, public squares and open space; an Academy education campus for all ages; multi-use community facilities; and new infrastructure to connect the new communities with the Olympic Park, one of the largest new urban parks in Europe for 150 years.
Construction work started on the Village in June last year and building work is now underway on 7 of the 11 residential blocks with work also beginning this month on the world-class new education campus, Chobham Academy.
Notes to Editors
1. The latest images of the Village designs and construction work can be downloaded from: http://mm.gettyimages.com/mm/nicePath/locog?nav=pr124264390
2. The Triathlon Homes investment of £268.7m into the Village includes £63.5m of lending from Barclays Commercial Bank and £95.2m of lending from the European Investment Bank
3. Triathlon Homes is an innovative joint venture company, which will purchase, own and manage 1,379 affordable homes at the 2,800-home Athletes' Village after 2012. Established by First Base, East Thames Group and Southern Housing Group, the company is committed to creating affordable, high quality homes for local people to ensure a successful legacy for Stratford and the wider east London community after 2012. For more information please visit www.triathlonhomes.com
4. Lend Lease is the development and construction manager for the Athletes' Village.
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For further information please contact the Olympic Delivery Authority Press Office on +44 (0)20 3 2012 700 or visit the website at london2012.com.
The construction of the venues and infrastructure of the London 2012 Games is funded by the National Lottery through the Olympic Lottery Distributor, The Department for Culture, Media and Sport, the Mayor of London and the London Development Agency.
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