Bournemouth Town Centre LABV (Local asset backed vehicle)
George Grace advised Bournemouth Borough Council, in creating a town centre regeneration vehicle. The aim of the vehicle is to provide a catalyst in revitalising the town and delivering elements of a Town Centre Master Vision. The project commenced with the council needing a strategic options report to analyse the options available in creating holistic regeneration of the town as well as providing financial returns to help deliver Town Centre Master Vision objectives.
The process included the development of a strategy, which achieved the Council’s objectives through the structuring of a vehicle, which holds the assets together with a private sector partner. A number of sites were identified which the Council will inject into the vehicle to be developed in conjunction with a carefully selected private sector.
This included undertaking and developing a detailed financial model to demonstrate the financial viability of the strategy proposed, and provide an Outline Business Case recommending the Town Centre Regeneration Vehicle approach. The approach was tailored to reflect the current market conditions by proposing a vehicle structure that only crystallises values once a site has obtained pre agreed readiness for development criteria and is transferred into the vehicle.
The partnership will undertake development activity in line with the Council’s objectives, including master planning, physical development, marketing and potentially land assembly. This will initially take place on Council owned sites committed to the partnership although once established the vehicle could look to make 3rd party acquisitions to help achieve its objectives.
The second stage of the project entailed leading the Council through the procurement process to select the preferred Private Sector Partner which culminated in the appointment of Morgan Sindall – one of the country’s leading development and construction companies. For detailed information click on the attachment below.