The government has approved a £250m fund to boost private investment in run down areas of the country.
The English Cities Fund, developed by the government’s regeneration company English Partnerships with AMEC and Legal & General, will focus on areas located on town and city fringes which cannot compete with nearby centres for investment.
English Partnership’s chief executive Laura Hay-Plumb said that the fund would “bring new development skills and fresh private capital into the regeneration of difficult sites in some of our major towns and cities.”
The fund will be worth an initial £100m investment, which will be raised by the investment of £50m equity from EP, L&G and AMEC, along with a bank debt of £50m. A further £150m will be raised from private sector investment after 3 years.
The announcement follows approval from the EC for the fund to be classed as legitimate state aid. Regeneration minister Lord Falconer said that the fund “will secure greater private investment in regenerating these parts that badly need it.”
Jones Lang LaSalle advised EP on the feasibility, structuring and financing of the fund.
Andrew Gould, lead director Europe at Jones Lang LaSalle Global Consulting, said: “The fund is a highly innovative solution to regeneration funding, having secured long term institutional investment, and will play a major role in the delivery of the government’s urban renaissance agenda.”
EGi News 11/12/01
