Miller Homes is acquiring St Modwen Homes which operates in the West Midlands, East Midlands and southern regions.
The Birmingham-based company has 19 live sites and is planning a further five. The deal will extend Miller’s interest into the south west of England for the first time.
The acquisition, worth up to £215 million, is part of Miller Homes’ target of building 6,000 homes a year. It will continue to operate the business under the St Modwen Homes brand, and it will open a regional office in the south west.
Private equity giant Blackstone bought St Modwen Properties for £1.3 billion in 2021 and has decided to sell the housebuilding arm.
Miller Homes CEO, Stewart Lynes, said: “Across the UK, people need high-quality, sustainable homes. We are committed to growth and playing an important part in addressing the housing shortage.
“We were attracted to the quality and location of St Modwen Homes’ land, helping us grow and expand to new areas.
“Through operating St Modwen Homes under its brand, we can continue to deliver choice to the market.”
The deal is subject to regulatory approval and is expected to close in the first quarter of 2025.
Miller Homes has also announced that construction of a residential development will begin early next year at the former Playdrome Leisure Centre site, Clydebank, which closed in 2017.
Millerpark forms part of the phased regeneration strategy for the town centre.
The 8.8-acre site will comprise 128 energy-efficient homes, marking the third such development in recent years for the town. Previous developments were Millerbank and Braidfields.
