Places for People鈥檚 拢100m modular deal up in air following firm鈥檚 financial woes
Places for People is exploring alternatives to delivering homes through its 拢100m deal with troubled modular developer Ilke Homes.
The 231,000-home housing association agreed a joint venture with Ilke in 2019 to deliver 750 homes. Under the tie-up, homes would be manufactured in Ilke鈥檚 North Yorkshire factory and delivered on site.
But, following Ilke鈥檚 announcement this week that it has filed notice of its intent to appoint an administrator, Places for People said it is looking at alternative ways of delivering its homes on some of its sites.
It said in a statement: 鈥淲e鈥檝e taken delivery of more than 30 homes across three sites; we鈥檇 originally planned for more but over a much longer period of time.
鈥淥ur absolute priority now is delivering homes for our customers and we鈥檙e focused on doing this via a different route.鈥�
It is believed the joint venture deal legally obliging Places for People to purchase 750 homes from Ilke remains in place.
Ilke鈥檚 filing of the notice on Tuesday this week is intended to protect the housebuilder, giving it 10 working days protection from creditors as it seeks to secure a sale or new investment.
Last week, Ilke said it was in talks with up to 15 investors regarding a sale but to date no deal has been inked.
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