Welbeck Strategic Land has secured its first major project. The strategic land fund, which is backed by Aberdeen Asset Management and LaSalle Investment Management, has this week secured a “promotion agreement” to bring forward the development of 300 acres in South Worcester.
After more than 18 months of negotiations, the fund, led by Bob Kidby, former head of real estate at law firm Lovells, has concluded deals with the 15 landlords that own the site.
Welbeck will now work up a masterplan proposing 3,000 homes and 62 acres of commercial and leisure uses.
“This is very unusual in development terms,” said Kidby. “To get 15 different parties working together to achieve the same goal is quite something.”
To enable all landlords to work together, Welbeck has come up with an “equalisation scheme” where each landowner will receive a share of the benefits of the development that is equal to the holdings they have. No single owner will benefit from having all the family homes on its land, or suffer for having all the open space, said Welbeck.
The fund does not buy sites but recoups cash spent on bringing them forward through planning and by taking a circa 20% share of the sale price.
Andrew Smith, development director at Welbeck Strategic Land, who brokered the deal, said: “We are very enthusiastic about South Worcester and feel that there is huge potential to create something special.
“We are working with our planning and design teams to develop new, attractive and sustainable communities, which benefit the wider area and fully integrate the development as part of the city of Worcester.”
A number of consultants, including Savills, EC Harris, Peter Brett Associates and EDP, have been appointed to advise on the 10-year project.
A search for a masterplanner will begin shortly, with an appointment anticipated by the year-end.
samantha.mcclary@estatesgazette.com
