A2Dominion forms joint venture companies to deliver £150m repairs services
Published by Max Salsbury for 24dash.com in Housing and also in Development
A2Dominion has formed two joint venture companies (JVs) to provide responsive repairs and void works over the next 10 years to the Group’s 34,000 properties across London and the South East.
The housing provider's move, valued at more than £150m, has seen the appointment of Breyer B-Line, the responsive repairs and maintenance division from the Breyer Group, and MITIE, the FTSE 250 strategic outsourcing and energy services company, as its limited liability partnership partners.
Starting from April 1, the 10-year agreement will have an option to extend for a further five years.
The joint venture companies have been named Pyramid Plus.
Andrew Evans, A2Dominion’s executive director (operations), said: “Following a lengthy procurement process, we look forward to working with Breyer and MITIE to establish the new companies.
"The JV model is, we believe, a more efficient and cost effective delivery vehicle that will provide a first class service to our customers whilst, at the same time, offer opportunities to generate additional revenue streams.”
For each of the JVs, A2Dominion will be the majority shareholder, with a 70/30 split agreed with the contractors.
Tim Breyer, managing director of Breyer Group, said: “This is an innovative delivery structure which provides us with the opportunity to further enhance our collaborative approach and develop a model that is at the forefront of partnership working.”
A2Dominion will pay a fixed price for the responsive repairs and void services, with any surpluses being shared by both parties and reinvested into additional work, or employment and sustainability initiatives.