Ensuring local assets stay local
February 12, 2014
UK Land Estates wanted to ensure that the ownership and operation of key North East assets remained firmly located in the North East. The company has its head office in the Team Valley and a management team that has been living and working in the North East for a number of years.
With its joint venture partner Highcross, last year UK Land Estates announced the buyout of the Homes and Communities Agency’s (HCA) interest in their joint venture, North East Property Partnership (NEPP).
The buyout of the HCA was partly supported by a lending facility jointly arranged and provided by The Royal Bank of Scotland and Santander. Following the buyout, UK land Estates plans to develop and improve the estates, which was one of the main attractions of the deal for the HCA.
NEPP was established in 2004 when the Regional Development Agency sought a private sector partner to manage and operate its commercial property interests in the North East for a ten year period. These interests extend across the whole of the region and include many of its key industrial and commercial centres.
David Curtis, executive director for the North East, Yorkshire and The Humber for HCA, said: “During the last nine years, the partnership has supported important businesses throughout the North East. As the company was due to wind up next year, this was the right time to review the future of the partnership and ensure it continues to underpin growth in important industries.
“Over the next two years it is expected that the income from the sale of assets to UK Land will support new priority projects for our local partners including four employment incubators in Blyth, Darlington Middleborough and Stockton as well as ensuring our on-going commitments to fund projects such as Middlehaven in Middlesbrough, Central Park in Darlington, Lower Ouseburn in Newcastle and the former Swan Hunter’s Yard in North Shields.”
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