Leeds showcased at Downing Street launch of £1.5bn regeneration fund

A £1.5bn fund for regional regeneration projects was launched by Legal & General at Downing Street yesterday.

Leeds was one of three cities invited to the event, alongside Birmingham and Bristol, which brought together major UK and international institutional investors.

The fund will invest across the UK in both equity and debt. It will take construction risk and invest in different sectors and projects, and expects to be involved in about 30 to 50 projects.

Cllr Keith Wakefield, Leader of Leeds City Council, said: “Leeds is an ambitious city and despite our financial challenges we are determined to drive forward and encourage jobs, investment and growth to secure our city’s future and that of the wider region.  We want to build on the incredible achievement, as cited in last week’s Centre for Cities report, that placed Leeds top in the UK for attracting new private sector jobs, even out-performing London.
 
“Having access to a sizeable regeneration fund that could enable the development of local infrastructure could also align very well with our continued push for the devolution of more local powers.  Increased local autonomy partnered with real funding support would place us in a far better position to ensure we have the right environment to attract the investment that will create opportunity and employment.”

The fund has been set up as a co-investment vehicle, with L&G acting as both principal investor and manager, and is a scaled-up version of a model that has been deployed for specific projects previously.

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 work 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 for Cities Greg Clark, who hosted the launch event, added: “L&G’s decision to launch a £15 billion regeneration vehicle and invest £1.5 billion is fantastic news and a vote of confidence in the UK economy and our regional cities.”