Private sector return crucial to East London regeneration LTGDC chief warns
9 September 2009
Private sector return crucial to East
London regeneration LTGDC chief warns.
Reducing the costs and risks of development in
order to ensure the swift return of private investors to East
London will make the difference between the continued regeneration
of the area or a decade of set back, London Thames Gateway
Development Corporation (LTGDC) chief Peter Andrews said today.
Speaking to an audience of over 150
developers, RSL’s and delivery agencies announcing its investment
programme for the next two years, Mr Andrews said that the priority
for LTGDC, the Government’s lead regeneration agency for East
London, was the early delivery of projects that could restore
confidence and participation of the private sector. The collapse of
the business model that was the major driver behind high density
developments in the area reconfirmed the pressing need for a
continued role for LTGDC in coordinating and directing regeneration
efforts in the area and funding vital infrastructure.
Mr Andrews revealed that to date LTGDC has
invested £133.5 million in the London Thames Gateway area with a
further £80 million investment planned up to March 2011. In the
wake of the credit crunch and ensuing downturn, LTGDC’s future
investment approach has been revised to meet the challenge of
depressed market conditions. While its long term objectives remain
the same, LTGDC has recalibrated its projects by bringing forward
those elements best placed to attract the private sector back.
Mr Andrews said: “East London is the toughest
corner of the block and has already suffered more than most areas
from historic market failure. The complete collapse of the business
model for high density developments means that regeneration has got
even tougher. The credit crunch has hit the balance sheets of RSL’s
and private developers and has seen once huge regeneration funds
derived from land receipts dry up to a dribble. With our
committed regeneration funds for east London LTGDC is ready and
determined to make a difference.”
LTGDC’s approach will see its investments
providing:
- Site assembly, clearance, remediation,
enabling work and securing planning consent to create 'shovel
ready' sites
- Reducing market risk by entering into joint
ventures with developers where the public sector contributes its
land and seeks a return linked to future revenue
- Actively reviewing planning gain policy in
the LTGDC area
- Investing in measures designed to make East
London a sought after location.
And Mr Andrews revealed some of the key
projects where LTGDC is making a difference:
In Canning
Town, LTGDC with Newham Council has appointed
Bouygues Development, and its consortium partner One Housing Group,
to develop plans to create a new Town Centre on a 16-acre
brownfield site opposite Canning Town station. The appointment of a
preferred development partner for the £500 million scheme marks the
start of the delivery phase for one of the UK’s largest
regeneration programmes. It is estimated that more than £3.7
billion will be invested to improve the area over the next 15 to 20
years.
In Barking LTGDC will shortly
be appointing a development partner to deliver the new-build
element of the Creative Industries Quarter and will use its
compulsory purchase powers to complete the assembly of the site. It
is working with the council to redevelop a 2.6 hectare site in the
town centre, creating 460 new homes. It has supported the
construction of the East London Transit. In June it granted
planning permission for 3,300 new homes in the first two stages of
Barking Riverside.
At the Sustainable Industries
Park, in Dagenham, LTGDC has invested over £30m in site
assembly and now owns 15 hectares of land, to create the UK’s
largest concentration of environmental industries and technologies.
Occupants for the park are being proactively sought with heads of
terms currently being agreed with Cyclamax, a waste to energy
business. LTGDC is now completing a design brief for the park,
continues to market it to secure suitable occupiers and is due to
select a joint development partner later this month.
On planning LTGDC has granted
planning permissions for almost 10,000 (9,524) residential units
and commercial developments that will generate 9,500 jobs. To date
LTGDC has agreed more than £60m of contributions to
infrastructure.
In education and skills LTGDC
will rollout its two year £6 million capital programme to boost
school building projects in east London. In addition its £2 million
revenue funding programme to schools and colleges aimed at
improving academic standards has already contributed to rapidly
improved GCSE results for the area.
Mr Andrews said: “LTGDC is uniquely placed in
these times to create the right environment to incentivise private
sector participation and involvement. Our corporate plan objectives
remain in place but our approach to delivery is to ensure that the
components of our plans that are best placed to instill confidence
and involvement of the private sector are our priority.”
END
To view a copy of LTGDC
‘Regenerating East London’ visit Publications (under
News).
For press enquiries please contact
Emma Cassidy
Tel: 020 7612 8478
Email: ec@londoncommunications.co.uk
Notes to Editors:
LTGDC’s fifth annual report will be launched
at the London Thames Gateway; Current Challenges,
Future Opportunities debate at east
Wintergardens a discussion led by a panel of prominent industry
leaders including Lord Falconer of Thoroton (former Justice
Secretary and Thames Gateway Minister) Eamonn Boylan (Homes and
Communities Agency), June Barnes (East Thames Housing CEO, Alastair
Baird (Barratts) and Mark Davies (Think London). The
discussion will focus on what the public sector delivery agencies,
the private sector and Government needs to do to meet the challenge
of building homes and communities.