The East Midlands Development Agency is looking to select a private-sector partner to bring forward millions of pounds worth of development in the region.
EMDA this week sent out an initial tender document to around 80 parties that have expressed an interest in forming a 50/50 joint venture to undertake development and to hold and manage a portfolio of investment properties.
They include British Land, Halifax Bank of Scotland, Morley, AXA and local property companies such as St Modwen. A shortlist will be drawn up in mid-September and a partner chosen by the end of the year.
The move follows increased government pressure on regional development agencies to meet stringent job creation and regeneration targets.
In January, One NorthEast chose UK Land Estates to manage its £120m property portfolio. Advantage West Midlands is also working up plans to outsource its property and expects to proceed next year.
EMDA, which covers Derbyshire, Nottinghamshire, Lincolnshire, Leicestershire, Northamptonshire and Rutland, has a property portfolio worth £44m, including several large development opportunities.
It also includes coalfield sites held on behalf of urban regeneration agency English Partnerships. EP will also contribute sites to the public-private partnership, and will effectively form a joint venture with EMDA to act as the contracting authority.
At the outset, EMDA and EP will commit eight to 10 development sites to the PPP and 500,000 sq ft (46,450 sq m) of investment assets at 40 locations. The agencies plan to contribute further assets in the future and want the PPP to buy sites for regeneration.
King Sturge’s Andrew Ludiman, who is advising EMDA, said the vehicle would have a similar structure to British Waterways’ regeneration PPP Isis, because of its emphasis on development.
He added: “This is an exciting project, and one that will help to meet EMDA’s and EP’s property regeneration objectives by drawing on private-sector funding and skills.”
References: EGi News 09/08/04
