Devon council is to create an asset-backed regeneration vehicle to bring forward one of the South West’s largest development opportunities.
The local authority will begin its search for a partner for the 1.5m sq ft Skypark business park, next to Exeter airport, next month.
The 107-acre scheme – which has outline consent for offices, warehousing, a 150-bedroom hotel, shops and a football ground for local club Clyst Rovers – is likely to be the first of several assets to be placed into the urban regeneration vehicle.
The vehicle will have a 15-year lifespan and is expected to return £49.3m to the joint venture partners. Profits are likely to be evenly split between the council and the developer.
The establishment of the vehicle is intended to finally bring the development of Skypark forward. It was first mooted a decade ago.
Devon will be the third local authority to create a URV, following Croydon, which will announce the development partner for its £450m vehicle in June and Newcastle, which will also select the partner for its £450m URV in the summer. Newham in east London and Manchester are also drawing up plans for URVs. King Sturge is advising Devon council.
