Medway Development Company

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Medway Development Company
Company typePrivate limited company
IndustryResidential development; regeneration
FoundedOctober 24, 2017 (2017-10-24)
FounderMedway Council
Headquarters Chatham, Kent, England
Area served
Medway, Kent
Key people
David Gannicott (Director); Jonathan Sadler (Director); Peter Sloane (Director); Richard Stevens (Director)
OwnerMedway Council
Website www.medwaydevelopmentcompany.co.uk

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]

Contents

History

The offices for Medway Development Company at Riverside One, Chatham The offices for Medway Development Company - Riverside One, Chatham.jpg
The offices for Medway Development Company at Riverside One, Chatham

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]

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:

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]

See also

References

  1. ↑ Nelson, Katie May (17 October 2022). "Council's development arm accused of £575k 'rip off'". Kent Online. Retrieved 5 May 2025.
  2. 1 2 3 4 5 6 "About Us". Medway Development Company. Retrieved 5 May 2025.
  3. ↑ "Medway Development Company Limited overview - Find and update company information - GOV.UK". 5 May 2025. Archived from the original on 5 May 2025. Retrieved 5 May 2025.
  4. ↑ "MDC was incorporated on 24 October 2017" "Update on Medway Development Company Ltd and Proposal for Private Rental Subsidiary – Cabinet Report (24 September 2019)"
  5. ↑ "Chatham's Waterfront project". Medway Council. Retrieved 5 May 2025.
  6. ↑ "Garrison Point". Medway Council. Retrieved 5 May 2025.
  7. ↑ "Two new town centre developments given the go ahead in Medway". We Are Medway. 25 March 2019. Retrieved 5 May 2025.
  8. ↑ "Mountbatten House, Chatham". DHA Planning. Retrieved 5 May 2025.
  9. ↑ Harbert, Joe (13 January 2024). "Plans for The Strood Waterfront project including 185 homes, cafe and waterfront bar revealed". KentOnline. Retrieved 5 May 2025.
  10. ↑ Nelson, Katie May (17 October 2022). "Council building arm Medway Development Company asks to pay less in Section 106 contribution for Garrison Point homes in Chatham". KentOnline. Retrieved 5 May 2025.
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