Bournemouth council has named Morgan Sindall as its preferred development partner to steer the £500m regeneration of the seaside resort’s town centre, in one of the first examples of a Local Asset-backed Vehicle set up between a council and a private contractor.
The scheme, which will run for 20 years, has a development value of between £350 m and £500 m. It is a 50/50 joint venture between Bournemouth Borough Council and Morgan Sindall Investments Limited, Construction News reported.
Bournemouth council has earmarked several parcels of land to invest into the partnership and these will be matched in cash value by Morgan Sindall.
Morgan Sindall will provide a full range of development services under the deal, according to Construction Enquirer. It’s expertise will be used for anything from long-term master planning and detailed site development through to property management and construction.
Work will cover delivering residential and mixed-use schemes to include leisure attractions, new homes, office accommodation and shopping.
The contractor will now work up an initial three-year business plan to confirm which sites could be tackled first and to establish what form the initial developments could take.
Money generated from the partnership will be ploughed back into improving the town’s infrastructure and public spaces.
Paul Smith, chief executive of Morgan Sindall Group, said: “We are delighted to be named preferred bidder on the Bournemouth Town Centre Master Vision and look forward to developing our relationship with Bournemouth Borough Council throughout the scheme’s life-cycle.
“This further expands Morgan Sindall Investments’ growing portfolio of projects and enhances our reputation to deliver projects that require integrated investment and construction capabilities.”
Crest Nicholson/Trevor Osborne Property Group, Barratt and Buoygues were among other developers to initially show interest in the Local Asset Backed Vehicle.
Another south coast holiday town,Torquay, is currently inviting interest from developers for a similar regeneration approach.
