Joint venture created to acquire brownfield sites
Developer Promenade Estates has signed a joint venture agreement with BXB, the specialist land remediation and planning business with a track record in buying constrained land.
The agreement will see special purpose vehicles formed to acquire individual brownfield sites from PLCs, government agencies and utilities.
It will use BXB’s remediation and planning skills to bring the land to market as ‘clean’ development sites, with most expected to appeal to house builders.
The move is in response to the Government’s agenda to see higher volumes of houses brought forward.
The JV will target the acquisition of large, constrained sites that registered social landlords and private developers would consider too large and risky for their balance sheets.
The joint venture has agreed the terms of its first deal for a major former industrial site in the North West of England and is negotiating on a number of other opportunities, says Promenade chairman Peter Hynd.
“Our JV is an intelligent combination of skills and resources to address a major strategic issue for both government and house builders. If we can free up more brownfield land we can speed up the supply of homes without eating into the green belt.”
Liverpool-based Promenade Estates has built up a significant ‘fighting fund’ in recent years following the strategic disposal of a number of major, fully-let developments, including Marine Point in New Brighton to Aprirose, the Ramada Plaza leisure scheme in Southport to Bliss Estates, and a major waterfront residential scheme overlooking Liverpool’s Albert Dock to Vista Fund, known as Cargo Buildings.
This was the first purpose-built PRS scheme outside London. Its most recent disposal was The Observatory office building in Queen Square to housing group Torus.
Gary Goodman of Liverpool-based BXB says the firm’s long track record in the sector will be key both to sourcing sites and managing their remediation and promotion through the planning process.
“There are very few companies with our combination of skills and resources to apply in this context and our first deal, which we will be able to announce shortly, demonstrates that major corporations understand that we make good custodians for their legacy land. Our professionalism enhances their reputation as they withdraw from a site.
“We can also acquire difficult, surplus sites owned by large corporations so that they can divest of liabilities and secure cash to invest in their core businesses. We remove risk from their balance sheet whilst generating cash for them.”
Promenade Estates was advised by Hill Dickinson, with Bermans advising BXB. Mason Owen is advisor to the joint venture on its current and future acquisition activities.
