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Delancey and Qatari Diar buy London Olympic village

The deal sees the joint venture acquire homes on the Olympic Village site in Stratford, east London, and its long term management, the Olympic Delivery Authority said. It would also include arrangements to provide a future profit share for the public sector.

‘This is a long term project for us. We are looking to retain the neighbourhood and create a place where people will want to live, work and play for years to come,’ said Jamie Ritblas, Delancey's chief executive.

Delancey and Qatari Diar will buy 1,439 homes that will become private housing after the Olympics, plus six adjacent future development plots with the potential for a further 2,000 new homes.

The majority of the homes would be rented out rather than sold by its new owners, creating a UK private sector residential fund of more than 1,000 homes to be owned and directly managed as an investment, the ODA said.

The other half of the village, 1,379 homes, had already been purchased for £268 million to be run by joint venture Triathlon Homes for affordable housing.

The village cost 1.1 billion pounds to build, and the UK taxpayer is expected to pick up the shortfall, which equates to about £275 million. But the ODA's return is better than it had forecast in 2009 when it said it expected to recoup at least £324 million from the sale of the flats.

‘This is a fantastic deal that will give taxpayers a great return and shows how we are securing a legacy from London's Games,’ said Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt.

Originally, the 2,800 apartment village was to be a private venture by developer Lend Lease but the global credit crunch meant investment dried up and the government opted to fund it itself.

Delancey and Qatari Diar beat a rival bid from Hutchison Whampoa, which is Hong Kong billionaire Li Ka-shing's flagship ports to telecommunications conglomerate and a £1 billion pounds proposal from the Wellcome Trust to take over all the 2.5 square kilometer Olympic park.