Greater Birmingham at the top table as £15bn regeneration pot launched

GREATER Birmingham is set to benefit from a new pot of regeneration cash that could be worth up to £15bn.

Representatives from the city region joined those from Leeds and Bristol yesterday for the launch of financial services company Legal & General Group (L&G)’s new regeneration vehicle which will provide investment for major UK projects including housing and infrastructure.

The launch was announced at a Downing Street Investment in Cities event hosted by cities minister Greg Clark. 

City representatives came face to face with major UK and international institutional investors at the event and made a presentation highlighting key development opportunities in the area.

The Greater Birmingham team comprised Andy Street, chair of the Greater Birmingham & Solihull LEP, Sir Albert Bore, leader of Birmingham City Council, Neil Rami, chief executive of Marketing Birmingham; and Waheed Nazir, director of planning and regeneration at Birmingham City Council. 

L&G is allocating £1.5bn to the vehicle and, working alongside investment partners, plans to secure further external funding up to £15bn.

The fund will invest across the UK – not just in the three cities at the launch event – in both equity and debt.

It will take construction risk and invest in different sectors and projects. It has been suggested a fund of such size could be involved in circa 30 to 50 projects.
The fund has been set up as a co-investment vehicle, with L&G acting as both principal investor and manager.

L&G describes this as the scaling of a model it is already deploying for specific projects including Salford, Plymouth, and London.

The fund will further benefit from co-operation and collaboration with RIO – the government’s Regeneration Investment Organisation – acting as sponsor to help facilitate a deal pipeline, and from working with central and local government on infrastructure projects.

Legal and General Group chief executive Nigel Wilson, said: “The UK is a terrific place to invest. We are well-positioned to work alongside UK and international money to channel funds into regeneration that delivers growth, homes and jobs.”

Minister Clark added: “L&G’s decision to launch a £15bn regeneration vehicle and invest £1.5bn is fantastic news and a vote of confidence in the UK economy and our regional cities.”

Greater Birmingham’s presentation concentrated on schemes including Icknield Port Loop and UK Central – as well as the Snow Hill and Southern Gateway areas of the city.
 
Sir Albert Bore, leader of Birmingham City Council, said: “Birmingham is a city on the rise. People and businesses are flocking here. We are Britain’s capital of enterprise and innovation. And we are at the centre of the world’s biggest high speed rail project, HS2, which is a magnet for investment.

“Demand for Birmingham’s office space, leisure space and residential property has never been higher.
 
“Today’s announcement demonstrates the growing confidence of investors such as Legal & General in regional cities like Birmingham.”
 

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