Morgan Sindall Investments announces £1bn joint venture with Brentwood Borough Council
Morgan Sindall Investments has confirmed its fourth local authority partnership having been named Brentwood Borough Council’s preferred joint venture partner to deliver a long-term programme of developments.
The 50:50 JV will provide new homes, mixed-use developments, public spaces, commercial and leisure facilities on the council’s substantial portfolio of land. Through the partnership, Morgan Sindall Investments will deliver funding and commercial expertise to bring forward redevelopment at pace and scale that will transform the Borough.
With a potential contract value of up to £1bn, the partnership’s concession period is for 30 years.
The award of the contract, which is subject to full Council approval, follows an extensive and competitive procurement process which saw the company see off competition from 15 other organisations.
The announcement marks the latest long-term local authority partnership that Morgan Sindall Investments has entered into. The company will draw on its strong track record of working in collaboration with councils across the UK. Its current JVs include partnerships in Bournemouth, Hertfordshire and in Slough, where funds raised from land receipts and development profits have helped to prevent cuts to frontline services.
Wes Erlam, managing director of Morgan Sindall Investments, said: “Morgan Sindall Investments’ selection by Brentwood Borough Council underscores our position as a leading local authority JV development partner.
“We are looking forward to making a real difference to communities in Brentwood through our successful JV partnership model, which has been delivering excellent results in Bournemouth and Slough where we have been working successfully since 2011 and 2013 respectively”.
Brentwood Borough Council Leader, Cllr Louise McKinlay, said: “This is the largest and most significant project Brentwood Borough Council has ever undertaken and will produce the most comprehensive opportunity for redevelopment in our borough.
“The partnership will allow us to make use of council land to build the vital homes and facilities our community needs. At a time of ongoing time squeezed local government funding, the profits raised will help to protect against making cuts to frontline services. Our residents will, over the coming months and years, be able to see a real change that will build on our heritage and create a Town of the future for generations to come.”
In addition the Council is acting as a central purchasing body through which other local contracting authorities in Essex may procure a substantially similar partnership with Morgan Sindall Investments
The JV will retain and manage certain properties that are developed and there will be opportunities for the Council to acquire properties, including affordable housing.