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Croydon Urban Regeneration Vehicle (CCURV)

Malcolm Lyon

Future of London, 27 July 2010

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Whats good about Croydon?

Excellent public transport links

Central London & Gatwick both15 minutes away by rail

Good supply of skilled workers

Good (and improving) retailcentre

Biggest economy in southLondon

Strong investor interest

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Croydon a town in need of regeneration

Pace of change slow:

council keen to kick

start major town centre

regeneration

Our district centres also

require investment

Little public moneyavailable

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Taberner

House

Land owner of key sites

College Green

Fell Road offices

Tamworth

Annex

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College Green

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Taberner House

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Fell Road

Tamworth Annex

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Waddon

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What is a LABV/URV?

Limited liability corporate entity

Between public and private sector partners

Able to utilise debt financing

Shared control

Flexible duration and membership

Clear reporting mechanisms

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Croydons Urban Regeneration Vehicle

(CCURV)

50/50 owned by the council andJohn Laing

Established 28 November 2008

Council contributes the assets

(initially 4, plus future pipeline);John Laing matches this equitystake in cash

Asset portfolio transferred to theURV valued through the biddingprocess

Life of vehicle up to 28 years

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URV as Limited Liability Partnership

Croydon Council John Laing

JL subsidiary

Limited Liability Partnership (LLP)

100%

LLP Board

50%

50%

PSP Property/Development

Manager - Project Team

Contractual arrangement between URV and PSPOutputsof URV

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Drivers for the Council

A wish to maximise value ofsurplus assets improvetraditional asset disposal route

To have a greater influence overhow and at what pace the assetsare developed

A need to replace our aging civicaccommodation which isbecoming increasingly costly tomaintain and create a new publicservices delivery hub with ourpublic sector partners

Contribute to the widerregenerative aspirations forCroydon

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What is attractive to the Senior Debt

Funders?

CCURV has already secured debt funding for the land assembly of Davis House

Council recycles a proportion of the value of its assets thereby improving the risk

profile to each party

The Council is committed to regenerating its Borough that brings confidence to theprocess and delivery objectives

Ability to flex delivery opportunities thereby aligning to market conditions

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Minimising Risk

Thorough CompetitiveDialogue process ensuredthat the Council chose apartner it can work with andis committed to its objectivesof the Borough

A mixed use solution to thedevelopment opportunitiesretaining flexibility within thepartnership agreement

Understanding that it is along term relationship andobjectives need to bealigned

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Achievements to July 2010

Purchase of Davis HouseDecember 2010 (occupancy90%)

Financial Close on CivicAccommodation March 2010

Fell Road demolition underway(site of civic accommodation)

Planning Approval Waddon May2010

Master Plan for College Greencompleted March 2010