Coventry-based Shearer Property Group has launched a hunt for a funding partner to support development of 1,300 homes at its City Centre South scheme.
SPG secured planning for the £390m residential-led development in April. Plans will see the largest redevelopment of the city centre since the 1950s.
Outline plans incorporate a mix of build-to-rent and private sale, alongside a 150-bedroom hotel and over 400,000 sq ft of commercial space. This includes a cinema, retail space and restaurants, alongside co-working and community space.
There will also be a central piazza connecting to a new sports, spa and waterpark facility branded The Wave, within the old listed market building.
The developer’s application estimates £375m in development costs. SPG has estimated £280m in income through build-to-rent, commercial and car parking net valuations.
At the time it also anticipated £17.5m in public funding, with the West Midlands Combined Authority fronting the initial land acquisition from landowner Coventry City Council. The site is located in the southern part of the city centre, comprising 15 acres at the Bull Yard, Shelton Square, Market Way, City Arcade and Hertford Street.
SPG was selected by the council in 2016, through an OJEU process, and has spent four years de-risking the project to create an “oven-ready” joint venture opportunity. The group has secured £100m from WMCA and is offering a stake in the project to finance the balance.
CBRE advised on planning and Montagu Evans is advising the funding search.
Guy Shearer, managing director at SPG, said: “Now we have reached this key planning milestone, we are looking for an enthusiastic joint venture partner, ideally with expertise in delivering residential, who understands Coventry’s potential and who has the appetite to shape and deliver a major project which benefits from significant grant funding.”
Alan Harris, head of town centres at Montagu Evans, added: “We expect significant interest from partners who want to take forward this nationally significant project and complement SPG’s industry expertise. I can’t think of another city centre which can be transformed so comprehensively and is ready to go.”
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