Gladedale (Central Scotland) LtdGladedale (Central Scotland) Ltd

Developer Experience of Deferred Receipt Mechanisms

Charles Church – Land Director

Gladedale (Central Scotland) Ltd

Gladedale (Central Scotland) LtdGladedale (Central Scotland) Ltd

Shift in Market Conditions

• Developers Lack of Money

• Risk

• Cash Management

Gladedale (Central Scotland) LtdGladedale (Central Scotland) Ltd

Local Authorities Responsibilities

• Local Authorities have a wider remit than just maximising Capital Receipt

• Local Authorities can be more flexible in deals

• Obliged to improve local environment, jobs, investments etc

Gladedale (Central Scotland) LtdGladedale (Central Scotland) Ltd

Methods of Disposal

• Development under Licence

• Long Lease Agreements

• Deferred Payments

“Public Sector Residential Land Disposal and Development”

Unlocking the potential of public sector land and delivering more residential development in these

turbulent times.

Steven Tolson

Ogilvie Group

Barriers to Development

Tests for this year, next year and years to come

• What is / will be the level of market activity and which sectors will be active?

• Will the Bank lend the consumer the money?

• Will the Bank lend the developer the money?

• What is the value of residential land?

Deferred Payments

• An agreed sum (no matter the performance)

RISK TRANSFERRED

• A percentage of sales income

SHARING SOME RISK

• A Profit Share

SHARING RISK

• Create a Physical Framework and look after the Public areas etc. BUILD PLACES

• Transferred serviced ground to allow house builders do what they do best. BUILD HOUSES

• Land receipts recovered expenditure and should / could have made money for the State.

A NEW TOWN DEVELOPMENT

OR

URBAN DEVELOPMENT CORPORATION MODEL

Public Sector

Promoting, Enabling and Participating

QUESTION:

Is the State prepared to Participate and Share the Risk?

Joint Venture

• Public Land Asset matched by Private Cash

Benefit

• Help deliver development objectives

• Maintain some control

• Share the reward

Precedents

EDI set up some 20 years ago to largely undertake regeneration projects and other projects that the market did not wish to undertake

Model adapted by Stirling Council and North Lanarkshire Council

Fusion Assets

Wholly owned by NL Council and enters into JVs

Stirling Development Agency

JV between Stirling Council and Valad. SDA undertakes development and investments

JV Precedents

Edinburgh Park

(JV City of Edinburgh and Miller)

Castle Business Park

(SDA JV Stirling Council and Valad)

Image Keith Hunter

Image Paul Zanre

JV Precedents

Edi / Buredi

JV City of Edinburgh Council / EDI / Burrell Co.

Drumpellier Business Park LLP

JV Fusion Assets (N Lanarkshire Council) and Ogilvie

hub - SFThub will deliver projects from a core identified scope and in future from wider service development business cases, in particular those projects that promote joint working amongst community planning partners. Projects will focus on new build but could also include the refurbishment and asset management services of existing infrastructure.

hub SFT

• A hub joint venture, “hub Co”, will be formed between the public and private sector….. Although the core service will concentrate on the planning, development and delivery of new infrastructure projects for community use in health and social care, the documentation will allow for these services to be extended (at public sector discretion) both:

• in terms of scope – to include libraries, primary education, police services, fire services etc, and

• and in terms of range of service to include estate management, service planning, property development, regeneration activities.