The agreement with Triathlon Homes will allow the Olympic Delivery Authority (ODA) to sell 1,379 out of 2,800 homes in the East London development.

 

Triathlon Homes is a joint venture between urban development company First Base and two local housing associations, East Thames Group and Southern Housing Group.

 

The pre-sale deal will see Triathlon Homes invest £268.7 million into the Village.

 

It helps make up for the lack of private investment that the developer Lend Lease had been able to secure due to the current economic crisis.

 

The investment includes a £110 million grant from the Homes and Communities Agency (HCA), equity from Triathlon Homes, and lending from a banking consortium.

 

The funding is separate to the ODA's budget and the remainder of the homes being built for the Athletes Village will be funded through the public-sector funding package announced by Government last month.

In the House of Commons today the Olympics Minister Tessa Jowell, made a Written Ministerial Statement confirming that she has issued a guarantee to the ODA enabling the deal to go ahead.

Jowell said: "I welcome the agreements between the Olympic Delivery Authority (ODA) and Triathlon Homes LLP for the purchase of 1,379 affordable homes on the Olympic Village development.

 

"As the ODA itself has no significant sources of funding independent of Government and is expected to have a limited life span that many of its obligations are expected to exceed, beyond the lifetime of the 2012 Games, I have agreed to a Ministerial guarantee of the ODA's obligations."

John Armitt, the chairman of the ODA, said: “The Athletes’ Village will deliver the legacy of thousands of new homes for Londoners and the affordable housing elements will ensure local people of all backgrounds can benefit from this new world-class development.

 

"Concluding the affordable housing agreements is an important step and with construction work on site making strong progress, the project remains on track.”

London Mayor Boris Johnson, said: "This is a very welcome landmark and complements the fantastic progress the ODA is making on the Olympic Park.

 

"The creation of affordable and high-quality housing in the East End is one of the most important parts of our legacy.

 

"Today's agreement brings us another step closer to thousands of Londoners benefiting and taking part in the creation of this thriving new district where they will live, raise a family, do business, study, and work."

John Healey, the Housing Minister said: "This deal is a prime example of how housing will receive a real boost from the Olympics and how thousands of Londoners will benefit from all types of affordable homes.

 

"These Olympic and Paralympic Games are not just about sport, they are about creating a legacy for communities in East London that will benefit people for generations to come."

Bob Kerslake, the chief executive of the HCA, said: “The HCA’s grant has been made available through our National Affordable Housing Programme which we manage to increase the supply of affordable homes.

 

"Our funding means the Olympic Village will provide the widest possible choice of tenures to meet the diverse needs of residents of East London , an area that has been designated to support housing growth in the capital well beyond 2012.”

The Athletes’ Village will accommodate athletes during the Olympic and Paralympic Games.

 

After 2012, it will leave the legacy of new homes together with new parks, public squares and open space; an Academy education campus for all ages; multi-use community facilities; and new infrastructure to connect the new communities with the Olympic Park, one of the largest new urban parks in Europe for 150 years.

Construction work started on the Village in June last year and building work is now underway on seven of the 11 residential blocks with work also beginning this month on the world-class new education campus, Chobham Academy.