Cookstown based construction firm McAleer & Rushe has signed a flagship deal worth £130m contract for 553 new homes at Wembley Park in London after plans to award the contract to failed business Carillion were shelved last year.
The contract will see the local firm deliver 553 new homes, to include 114 affordable homes, on the prestigious site next to Wembley footballstadium.
The project is the second phase of development at the South West Lands site where McAleer and Rushe is already running a £55m scheme as part of phase one.
The firm is also on site building a Premier Inn, taking its total contract value at Wembley Park to £212m.
The latest contract was awarded by lead developer Quintain which has confirmed that Carillion was in the frame for the scheme prior to its first proft warning which was issued last July.
“Quintain take the financial strength of our contractors and wider supply chain very seriously and during negotiations for a build-to-rent development at Wembley Park, Carillion issued their first profit warning,” executive director of construction Matt Voyce told Construction News.
“We were concerned that the level of loss declared, along with the huge pension deficit, would seriously impact Carillion’s ability to continue to trade and garner the support of the supply chain, increasing the likelihood that our cost and programme objectives would not be met.
“We therefore took the view that we would not proceed into contract upon the completion of Carillion’s precontract commission and commenced discussions with McAleer & Rushe, whom we have now successfully contracted with.”
Of the 553 new homes, 114 will be affordable, split between affordable rent and shared ownership. The remaining 439 will be rental homes managed by Quintain’s wholly owned build to rent operator, Tipi.
“We are delighted to award this £130m contract to McAleer & Rushe who are doing an excellent job on the first phase of South West Lands,” said Quintain chief executive Angus Dodd.
“The award of this contract, which will deliver over 550 new homes, marks another important step in the delivery of Wembley Park as we continue its transformation into the UK’s most exciting mixed-use destination.”
Eamonn Laverty, CEO of McAleer & Rushe said the deal its largest contract to date marked a significant milestone for the firm.
“This is our third contract with Quintain since 2016 and the project cements our partnership with them as a trusted member of their Main Contractors framework.
“The signing reinforces our position as one of the leading design and build contractors in the High End Residential and Private Rented Sector and we look forward to further involvement in the wider Wembley Park masterplan.”
Celebrating its 50th anniversary last year, McAleer & Rushe is involved in major projects across the UK with projects recently announced in Brighton and Glasgow.
It is also heavily involved in the redevelopment of Belfast and has carried several major private sector projects and also worked closely with the City Council on projects including its new offices on Adelaide Street in the city centre.