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Medway Development Company
English housing and regeneration company From Wikipedia, the free encyclopedia
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Medway Development Company Ltd, referred to as Medway Development Company (MDC), is a housing and regeneration company wholly owned by Medway Council in Kent, England.[1] It was established in 2017 to deliver residential developments on council-owned land, supporting local regeneration initiatives and housing targets.[2]
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History
Medway Development Company was incorporated on 24 October 2017[3] following approval by Medway Council's Cabinet in July 2017.[4] The council authorized the creation of a wholly owned housing company to develop council-owned land on a commercial basis, aiming to meet long-term housing objectives and generate financial returns for reinvestment. An initial borrowing facility of up to £120 million was approved to fund the company's first five-year program.[2]
Governance
Medway Council is the sole shareholder of MDC. Governance is exercised through a Cabinet sub-committee acting as the shareholder board. The company's board comprises both council-appointed directors and independent non-executive directors.[2]
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Operations
MDC's business model involves acquiring and developing land, primarily from the council, for residential schemes, then selling or renting the homes. The council provides funding through loans or land equity, with MDC repaying loans from sales receipts or rental income.[2]
In November 2020, two subsidiaries were established:
- Medway Development Company (Land and Projects) Ltd: Holds and acquires development sites.
- Medway Development Company (PRS) Ltd: Manages private rented sector initiatives.
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Projects
Chatham Waterfront
A redevelopment project in Chatham town centre, comprising 175 new apartments, along with commercial spaces and public realm improvements. Planning permission was granted in March 2019, and construction began in 2021.[5]
Garrison Point (Whiffens Avenue)
A residential development of 115 one- and two-bedroom apartments on the former Whiffens Avenue car park. Construction started in 2020, with completion reported in 2023.[6]
Britton Farm, Gillingham
A project involving the construction of 44 affordable homes in the old loading bay at Britton Farm, along with public realm improvements. Planning permission was granted in March 2019.[7]
Mountbatten House, Chatham
Conversion of a 12-storey office tower into 164 apartments, with an additional rooftop extension and ground-floor commercial spaces. Planning permission was granted in April 2021.[8]
Strood Waterfront
A proposed 185-home riverside development on the former Strood Civic Centre site, including a café and waterfront bar. Plans were unveiled in January 2024.[9]
Financial performance
As of March 2024, outstanding loans from the council to MDC stood at £87.314 million, up from £34.516 million the previous year. The majority of this (£75.3 million) finances homes for sale, with a smaller portion funding units held for long-term rental.[2]
MDC does not pay external dividends to the council; returns comprise interest on loans and surpluses from capital receipts. Each development scheme undergoes viability reviews before funding is released, and all loan draws require council approval.[2]
Reception and controversies
In October 2022, MDC requested a reduction of £575,000 in planned infrastructure contributions for the Garrison Point scheme, citing increased costs and changes in site mix. This move attracted criticism from local councillors and media outlets.[10]
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See also
References
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