Nine developers longlisted for £450 million regeneration scheme in Newcastle's west end
28 January 2008
The regeneration scheme known as ‘Scotswood Expo’
King Sturge has longlisted nine developers for the development of a 125 acre site in Newcastle’s west end as part of the HMR Pathfinder programme. The £450 million regeneration scheme known as ‘Scotswood Expo’ will provide 1,800 new homes and 65,000 ft² of shops and community facilities as part of an initiative to transform the Scotswood neighbourhood.
Newcastle City Council, English Partnerships and Bridging NewcastleGateshead are seeking a development partner to set up a joint venture vehicle to fund and deliver this major scheme. The Scotswood URV (Urban Regeneration Vehicle) will be one of the first such Local Authority based joint venture initiatives in the UK, albeit the principles are modelled on similar joint ventures already established, and operating successfully, by a number of Regional Development Agencies. Croydon Council, also advised by King Sturge, has shortlisted bidders and is close to launching a URV to take forward the development of a number of key town centre sites.
There were over 70 expressions of interest and nine developers have now been longlisted to participate in the ‘competitive dialogue’ procurement process. These include; Countryside Properties, St Mowden, Urban Splash, Gleeson, Grainger, Compendium, and three consortiums led by Barratt Developments, Taylor Wimpey and Persimmon respectively.
Jonathan Bull-Diamond, Director of King Sturge Financial Services, who is advising Newcastle City Council, said: "Local authorities have been looking at URV’s in the past year following pressure put on them by central government to look at their assets. Local authorities up and down the country are examining their options and will be watching Croydon and Scotswood very closely’."
Alan Sears, Project Manager at Newcastle City Council added: "This is a unique and exciting regeneration opportunity to provide a new sustainable neighbourhood in an area that has suffered from long term housing market failure. It is an innovative approach to addressing urban decline and will act as a catalyst for the regeneration of Scotswood and Newcastle’s west end."
King Sturge said they expect to shortlist three developers in March with the URV being formally established early in the autumn.
