Galliard Homes has struck a deal to build £1bn worth of flats of homes in London with a consortium of American investors, the Sunday Times has reported.

Galliard has formed a joint venture with Cain Hoy, which is named after a racehorse stable owned by legendary US businessman Harry Guggenheim.

Cain Hoy and Galliard have each put £225m into the joint venture, which will develop residential properties in well-heeled London suburbs, like Clapham and Chiswick.

Galliard chief executive Stephen Conway told the Sunday Times the joint venture will target homes in the £250,000-500,000 price bracket, which he said was likely to be shunned by the company’s bigger competitors. He said he aimed to ‘undercut’ the likes of Berkeley Homes and Ballymore.

Cain Hoy hit the headlines in September when it launched an unsuccessful bid to take over Tottenham Hotspur Football Club, since when it has formed a jv with property company Sager to develop the £400m Islington Square mixed use scheme on the site of the north London borough’s historic post office.

Galliard has also recently unveiled plans for a 600 home development that is designed to help fund a new stadium for AFC Wimbledon.