L&Q complete £505m Gallagher acquisition
London & Quadrant Housing Trust (L&Q) has completed the £505m acquisition of Gallagher Estates, one of the largest strategic land companies in the UK.
Gallagher Estates will become a wholly owned subsidiary of L&Q and will continue to operate as a standalone entity.
L&Q said the acquisition puts it as ‘one of the leading enablers of new homes across the UK’, adding that it expects the acquisition ‘to become immediately accretive to its earnings’.
Gallagher Estates, based in Warwick, controls plots to deliver 42,500 new homes, mainly in the South and South Midlands regions of the UK. The business promotes sites through the planning process, from pre-allocation stage to securing implementable planning consents before delivering serviced land to the market place.
Turnover for the year ended 30 June 2016 was £182m, generating pre-tax profits of £79m.
David Montague, chief executive of L&Q said: ‘Our acquisition of Gallagher Estates is a defining moment for L&Q and shows our commitment to our vision of creating 100,000 new homes in our capacity as lead developer and as an enabler working with key delivery partners.
‘Land is a key part of that solution and the acquisition of Gallagher Estates will enable L&Q to unlock land for development across a wider range of tenures and speed up the delivery of new homes through our ability to invest in the long term.
‘It will also add significant skills and expertise of one of the leading strategic land companies in the UK and allow L&Q to take a lead role in enabling housing delivery on a regional basis, whilst generating significant resources for reinvestment into new affordable housing.’
Greg Wilkinson will remain as managing director of Gallagher Estates, reporting to Jerome Geoghegan, group director for development at L&Q.
Stephen Burnett will remain as finance director of Gallagher Estates and will report into Waqar Ahmed, group finance director at L&Q.
Aubrey Adams, chair of L&Q, will chair the board of Gallagher Estates that will report into the board of L&Q.