L&Q Housing Association (HA) has purchased Gallagher Estates for approximately £505 million.

The deal follows L&Q's merger with East Thames Limited, which plans to deliver 100,000 new homes.

Under the acquisition, Gallagher Estates will become a wholly owned subsidiary of L&Q, and will continue to be run by the current management team as a stand-alone entity.

David Montague, Chief Executive of L&Q, said: "Our acquisition of Gallagher Estates is a defining moment for L&Q and shows commitment to our vision of creating 100,000 new homes in our capacity as lead developer and as an enabler working with key delivery partners.

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"Through this deal L&Q will unlock land for development across a wider range of tenures, and speed up the delivery of new homes through our ability to invest over the long term.

"It will also add the significant skills and expertise of one of the UK's leading strategic land companies, and allow L&Q to take a lead role in housing delivery on a regional basis, whilst generating significant resources for reinvestment into new affordable housing."

Tony Gallagher, Chairman of Gallagher Estates, added: "I am delighted to entrust the business that I have developed over many years to L&Q. They have impressed me at every level throughout this transaction. I have no doubt that they will achieve all their new housing objectives and that they will play a big part in resolving the under-supply of housing for UK Limited."

(LM/MH)