Haringey Council will next week kick-start the hunt for a development partner to regenerate up to £2bn of property assets across the borough through an innovative vehicle that it says represents “London’s biggest growth opportunity”.
The north London borough boasts a world-famous town centre, Tottenham, because of its football club and is poised to benefit from the £400m redevelopment of the Tottenham Hotspur stadium and two Crossrail 2 stations.
But parts of the borough have been plagued by poverty, low land values and underperforming high streets, presenting a regeneration challenge that, says Haringey, requires a long-term development partner.
Launching on 11 January through the Official Journal of the European Union procurement process, the council is seeking a joint venture partner to take on a 50:50 stake in a property company for 15 to 20 years across at least 20 identified sites. The council will put its assets into the vehicle, with the partner taking on costs of redevelopment. Profits will be shared between the parties.
Seed sites will include housing estates, brownfield land and commercial plots around regeneration areas in Tottenham and Wood Green (see below).
“The traditional public sector approach is to dispose of land to a partner and to move on to the next site,” says Alan Strickland, Haringey’s cabinet member for regeneration. “But because this is about our residents and building a better borough, we want to get cash and development skills to make regeneration happen.”
The development vehicle has been modelled on a number of long-term public-private sector partnerships that have recently formed. These include Hammersmith & Fulham’s 15-year joint venture with Stanhope to build more than 300 homes, and Sunderland City Council’s “Siglion” delivery vehicle, a 20-year jv with Carillion and Igloo Regeneration.
The nature of the Tottenham vehicle, Strickland says, will allow both the council and developer to reap long-term financial profits from the developments, while accelerating the speed of delivery. In addition to an estimated 4,600 new homes across all the sites, the vehicle would have control over the council’s 146 commercial assets, including office, industrial and retail space, which have an estimated value of £48m and a net annual income of £2.1m.
Strickland says it will be a challenge to work with the council and communities affected by regeneration, but points to the council’s recent work with Grainger to redevelop Apex House near Seven Sisters and enlisting support from High Road West residents for a major regeneration involving the demolition of 297 homes.
For this latest venture the council hopes to select a creative partner with experience of major regeneration schemes.
“We want bidders that are prepared to challenge us, that are prepared to offer new ideas and innovation,” Strickland says.
Potential partners have until 22 February to register their interest.
KEY OPPORTUNITIES
Northumberland Park Estate, N17
- Council-owned housing estate comprising 1,337 council properties across 56.8 acres
- Earmarked for 3,500 new homes as part of a scheme that would retain the existing number of social homes, adding a mixture of shared ownership homes, private rented homes and homes for sale
- Close to White Hart Lane and new Northumberland Park Station, as well as a proposed Crossrail 2 station
- Will offer 96,875 sq ft of public open space
- Potential for new schools, improved community facilities, shops, work spaces and a health centre.
Wood Green town centre
- Proposals to bring back into use underused brownfield land and maximise capacity for housing and employment growth in the town centre, with extra open space, play areas and community facilities
- Council-owned assets include the Arriva bus depot on the High Road and travellers’ site adjacent to Wood Green Civic Centre
- If amalgamated with private sites, the scheme could provide “comprehensive development opportunities”
- In 2014, the local authority invested £2.4m in a public realm improvement scheme
- The area contains two Piccadilly Line Underground stations on the High Road as well as two mainline stations at Alexandra Palace and Hornsey. The transport links give Wood Green town centre a major advantage over other areas, which will be compounded if Crossrail 2 is delivered.
