Morgan Sindall has joined forces with Bournemouth council to create a 20-year, £350m-£500m local asset-backed vehicle.
In a stock market announcement, the listed construction and regeneration group said investments unit had signed contracts with the council for the Bournemouth Town Centre Vision LABV scheme.
The scheme, which will run for 20 years, and has a development value of between £350m and £500m, is a 50/50 joint venture public/private partnership between the council and MSIL.
The project will deliver a range of residential and mixed-use development, including leisure attractions, housing, shops and offices across 17 sites in the town centre.
MSIL will provide funding for the development of projects, matching the land value contribution from Bournemouth council.
In addition, MSIL will provide strategic development services to the partnership. This includes long-term masterplanning, detailed site development planning, property management and design and construction.
Surpluses generated by the partnership will be reinvested in improvements to the town’s infrastructure and public spaces.
Paul Smith, chief executive of Morgan Sindall, said: “We are delighted to finalise this contract with Bournemouth Borough Council. We have vast experience of delivering complex, long-term, mixed-use projects of this nature, and look forward to working alongside the council during the project’s lifetime. MSIL’s portfolio of investment-led projects is growing. Our strategic approach in bidding for schemes that require integrated investment and construction capabilities will create shareholder value in the long-term, and generate work for our construction divisions in the short-term.”
King Sturge and Pinsent Masons advised on the LABV agreement.
paul.norman@estatesgazette.com
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