Croydon's local asset backed vehicle
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Transcript of Croydon's local asset backed vehicle
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Croydon Urban Regeneration Vehicle (CCURV)
Malcolm Lyon
Future of London, 27 July 2010
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Whats good about Croydon?
Excellent public transport links
Central London & Gatwick both15 minutes away by rail
Good supply of skilled workers
Good (and improving) retailcentre
Biggest economy in southLondon
Strong investor interest
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Croydon a town in need of regeneration
Pace of change slow:
council keen to kick
start major town centre
regeneration
Our district centres also
require investment
Little public moneyavailable
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Taberner
House
Land owner of key sites
College Green
Fell Road offices
Tamworth
Annex
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College Green
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Taberner House
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Fell Road
Tamworth Annex
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Waddon
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What is a LABV/URV?
Limited liability corporate entity
Between public and private sector partners
Able to utilise debt financing
Shared control
Flexible duration and membership
Clear reporting mechanisms
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Croydons Urban Regeneration Vehicle
(CCURV)
50/50 owned by the council andJohn Laing
Established 28 November 2008
Council contributes the assets
(initially 4, plus future pipeline);John Laing matches this equitystake in cash
Asset portfolio transferred to theURV valued through the biddingprocess
Life of vehicle up to 28 years
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URV as Limited Liability Partnership
Croydon Council John Laing
JL subsidiary
Limited Liability Partnership (LLP)
100%
LLP Board
50%
50%
PSP Property/Development
Manager - Project Team
Contractual arrangement between URV and PSPOutputsof URV
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Drivers for the Council
A wish to maximise value ofsurplus assets improvetraditional asset disposal route
To have a greater influence overhow and at what pace the assetsare developed
A need to replace our aging civicaccommodation which isbecoming increasingly costly tomaintain and create a new publicservices delivery hub with ourpublic sector partners
Contribute to the widerregenerative aspirations forCroydon
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What is attractive to the Senior Debt
Funders?
CCURV has already secured debt funding for the land assembly of Davis House
Council recycles a proportion of the value of its assets thereby improving the risk
profile to each party
The Council is committed to regenerating its Borough that brings confidence to theprocess and delivery objectives
Ability to flex delivery opportunities thereby aligning to market conditions
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Minimising Risk
Thorough CompetitiveDialogue process ensuredthat the Council chose apartner it can work with andis committed to its objectivesof the Borough
A mixed use solution to thedevelopment opportunitiesretaining flexibility within thepartnership agreement
Understanding that it is along term relationship andobjectives need to bealigned
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Achievements to July 2010
Purchase of Davis HouseDecember 2010 (occupancy90%)
Financial Close on CivicAccommodation March 2010
Fell Road demolition underway(site of civic accommodation)
Planning Approval Waddon May2010
Master Plan for College Greencompleted March 2010