We will own and manage 39 new homes and three community‑facing commercial units on Pershore Road in Stirchley.
We had partnered with Stirchley Co-Operative Development (SCD) on the project, and the intention was for SCD to purchase, own and manage the homes. However, it is now clear SCD can’t meet the cost of the project, and the most responsible option is for us to retain and manage the development.
We will work with Birmingham City Council to manage the lettings process and with the three local co‑operative businesses the commercial units at the development are intended for with a view to agreeing arrangements as soon as possible.
Ruth Cooke, Chief Executive of GSA, said: “We understand this development has deep roots in the Stirchley community, and we are committed to ensuring the spirit of the project continues.
“I thank Stirchley Co‑operative for its leadership and contribution to this project over the last eight years.
“While we appreciate this is not the expected outcome for SCD and our partners, as a not-for-profit social housing provider it would be irresponsible for us to absorb the £1.16m shortfall between the cost of the development and SCD’s offer, which would ultimately compromise investment into homes and services for our customers.
“It has always been our intention to sell this site to SCD and for it to be run as a community-led scheme. The initial cost of the development has increased due to a number of challenges during construction – including the original contractor liquidating and associated challenges which we had to pick up when we took over the site. We have been clear about these cost increases with SCD throughout this process.
“We are committed to reaching the right outcome for Stirchley residents. We will now work with Birmingham City Council to ensure the 39 much-needed homes at the site are let at social rents and that we work with the three co-operative businesses with the aim of reaching an agreement as quickly as possible.”