Surgo and Grainger Agree Joint Ventures

The Journal (Newcastle, England), July 27, 2005 | Go to article overview

Surgo and Grainger Agree Joint Ventures


Byline: By Nigel Stirling

Surgo Construction has signed a series of joint venture agreements with Grainger Homes in a move it hopes will boost its turnover by pounds 12m over the next 18 months.

The Newcastle-based companies have teamed up on three residential developments and are in negotiations for a fourth near Bedlington railway station on a site owned by Grainger.

Surgo chief executive Ian Walker said the joint ventures would be the first of a number which within two years will account for 30% of the contractor's turnover.

The three current joint ventures at sites at Hebburn, Powburn, Northumberland, and Blyth will account for 20% of the company's forecast 2005 turnover of pounds 55m.

Mr Walker said the partnership will reduce Surgo's reliance on tendered work while the company's building skills complemented Grainger's expertise in land acquisition and sales and marketing.

Profits and costs between the partners will be shared 50:50 and Surgo, which employs 250 people in the North-East, will build the developments.

Mr Walker said Surgo, which de-merged from Bowey Homes nearly four years ago, will put in half of the capital for the joint venture developments ( a marked change from its previous history as building contractor. …

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