Modus has teamed up with rival Simons Developments to bring forward a 410,000 sq ft regeneration project in Wakefield.
Simons, advised by DTZ, has been searching for a funding partner on the scheme for eight months.
The Lincoln-based firm had signed a deal with Robert Laurence’s Resolution Property, but the investor pulled out of the agreement in October.
Manchester-based Modus, which is backed by Corovest International, has now been selected as Simons’ £200m funding partner on the scheme.
The partnership has surprised many, as Modus and Simons typically compete head-to-head over regeneration projects.
However, a source close to Modus said the firm wanted the scheme for its investment arm, which it runs alongside its development activities.
“At this stage, Wakefield is still a development rather than investment project, but Simons wanted someone that could share the development risk and take on the investment when the project went live,” he said.
The source added that Modus and Simons were now talking about working together on future projects.
“Simons is a contractor and Modus is more focused on operational issues, so they would not be falling over each other. The pair will look at things where they can work together in the future.”
Work on the Debenhams-anchored development, for which planning consent was granted in February, is expected to start next year. The funding deal is scheduled to be complete by the end of September.
References: EGi News 31/07/06
