The limited amount of private sector funding during the recession led to a handful of local authorities working in partnership with the private sector to unlock retail-led development.
In the post-recession UK, we at Queensberry Real Estate believe that this model is not only still highly relevant, but the key to regenerating our towns and cities.
Despite some institutional money returning, it is not enough to bring about the investment needed. Local authorities can and must provide access to this funding – particularly in some of our most dilapidated city centres. Without it, much-needed regeneration will not get out of the ground.
Local authorities have the statuary powers and land resources to make development possible. Their unrivalled local knowledge must also not be forgotten.
But for a development to be truly successful, it needs the industry’s “finger on the pulse” understanding of retailer demands and consumer trends, as well as the delivery experience.
This must be combined with a quality approach to design to ensure a development is commercially viable and stands the test of time.
While a bigger role in development comes with increased risk for the public sector, the rewards from regeneration – including further investment from the private sector, job creation and an uplift in civic pride – are substantial.
The benefits of this public-private approach are seen in Friars Walk, Newport, which launches next week (12 November). An estimated 1,200 jobs have been created and Newport is now one of Wales’s fastest-growing cities – and a top 100 UK retail destination. National firms have made the city their home, including Admiral Insurance, which has brought a further 130 jobs to Newport.
This approach is continuing across our towns and cities. From Swansea to Sheffield, local authorities are taking the lead to find private sector partners to deliver some of the most ambitious retail and leisure schemes in the country.
We urge more local authorities to follow suit.
Paul Sargent is co-founder and chief executive, Queensberry Real Estate
