Private Investment in Area Based Regeneration

1
Private Investment in Area Based Regeneration

• Chris Brown

2
Private Investment in Area Based Regeneration

• Sources
• Barriers
• Innovation

3
Sources of Private Finance

• Equity
• Debt
• Timescale, Risk, Rate of Return

4
Sources of Private Finance Equity

• Institutional
• Property Company
• Private Equity

5
Sources of Private Finance Debt

• Property Specific
• Cross Collateralised
• Corporate
• Guaranteed

6
Sources of Private Finance

• Timescale
• Risk
• Rates of return

7
Sources of Private Finance
8
Barriers to Private Finance

• Policy
• Market
• Regeneration

9
Barriers to Private Finance - Policy

• Gap Funding and State Aid
• Public Sector Guarantees
• Site Assembly and Disposal
• Tax

10
Barriers to Private Finance - Market

• Risk and Return
• Size and Timing of return
• Occupiers
• Regeneration Index

11
Barriers to Private FinanceRegeneration

• Regeneration Skills Gap
• Crime and Social Capital
• Public Realm and Infrastructure
• Local Environment

12
Barriers to Private FinanceRegeneration
13
Innovating to Secure Private Finance

• Funds
• Tax
• Instruments

14
Innovating to Secure Private Finance - Funds

• English Cities Fund
• Igloo Regeneration Fund
• PPP Funds
• Rolling Land Assembly Funds

15
Innovating to Secure Private Finance -Tax

• LTRP
• BIDs
• Incentives
• Transparency

16
Innovating to Secure Private Finance -Instruments

• Guarantees
• Bonds
• PFI
• Risk Sharing
• Direct Investment

17
Innovating to Secure Private Finance
18
Conclusions

• Create the Environment
• Assemble the Site
• Structure the Deal
• The Money WILL Follow