RNS Number:4072J
Gleeson(M J)Group PLC
31 March 2003



GLEESON CONSORTIUM LANDS UK'S FIRST HOUSING PFI



Grove Village, a consortium led by construction firm Gleeson, has closed the
UK's first housing project to be awarded under the public finance initiative
(PFI). The contract, with a total value of #99 million, was signed with
Manchester City Council last week (Tuesday, March 25).



Housing Minister Lord Rooker commented on the first housing Private Finance
Initiative contract last week as a significant event, demonstrating a commitment
by both local and central government, tenants and contractors, to bring about
improved sustainable communities.



The consortium, comprising Gleeson with 49% and Harvest Housing Association and
Nationwide Building Society each with 25.5%, will redevelop the Plymouth Grove
housing estate on the outskirts of Manchester and maintain it over a 30 year
period.



Plymouth Grove has a large proportion of dilapidated, abandoned and poorly
maintained properties, many of which will be demolished. The project will
involve the refurbishment of 663 houses and the construction of around 600 new
houses for sale.



Sale of new homes to private householders will help fund the refurbishment of
the retained existing stock.  The refurbishment work will be carried out with
the tenants in occupation and will be completed over the next three years.



Three separate businesses make up the Gleeson contingent in the consortium. The
Northern Division of Gleeson Construction Services will undertake the main
refurbishment and infrastructure work while Gleeson Regeneration will build the
new homes. Powerminster, Gleeson's M&E specialist company, will undertake
facilities management services for the duration of the contract.



Manchester and District Housing Association, a subsidiary of Harvest Housing
Association, will provide housing management services over the 30 year period.



Commenting on the contract, Gleeson Group Managing Director David Eyre said: "
Plymouth Grove is very much a landmark project, being the first of eight PFI
Pathfinder housing schemes planned by the government.



"In awarding this contract to the Grove Village consortium, Manchester City
Council has demonstrated its faith in our professionalism and that of our
consortium partners.  We are totally committed to ensuring value for money for
the client and providing the highest quality living environment for the
residents of Grove Village", added Mr Eyre.


Enquiries:

M J Gleeson Group plc                                      020-8644 4321
  Dermot Gleeson (Executive Chairman)
  David Eyre (Group Managing Director)
  Colin McLellan (Finance Director)

Bankside Consultants Limited
  Charles Ponsonby                                         020-7444 4166




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