Suffolk County Council is seeking partners for 50/50 joint ventures for the residential development of multiple sites across Suffolk and is seeking private sector partners to help realise the ambition.
The costs and contributions would be split between the Council and the partner, with the council providing the sites initially, though the partner would be expected to make service and financial contributions.
When the developments are completed, individual units or development parcels will be sold, with the profits split between the council and the partner based on their equity holdings, with the total value of the developments estimated to be £500,000,000- £750,000,000 (excluding VAT).
The council has a wider development plan for sites in the area, with the first five sites designated as ‘Cat A’ sites. The sites are North of Lowestoft Garden Village, West Mildenhall, Newmarket St Felix former middle school, West Row and Bramford, with the scope of having subsequent sites added, some of which are not yet identified, but they believe that alternative arrangements will be made for these.
The joint venture will need to work together to establish the most appropriate deliveries of the sites and may require site-specific requirements at the time, such as who is going to supply the construction services, or sites at times being retained by the council.
It is envisaged that the partner will provide the cash to the JV, with the Council’s equity contributions being realised via their land contributions, but the council does reserve the right to contribute funding to the JV, by loan or other equity contributions.
The Council is searching for up to five partners to work with, for a contract period of up to 15 years (with scope for an extension of up to 10 years) and is currently open for applications.
Advisors to the procurement procedure have been Concertus Design and Property Consultants, Avison Young and Pinsent Masons.
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