McGrigors and Pinsent Masons have advised on a £265m deal that has seen Newcastle City Council partner with a consortium of developers to regenerate the Scotswood area of Newcastle upon Tyne.
McGrigors Manchester-based infrastructure partner Nick Ogden led the team advising the BKY consortium, which is made up of Barratt Developments subsidiary David Wilson Homes as well as Keepmoat Homes and Yuill Homes.
The consortium partnered with the council, which was advised by Pinsents outsourcing partner Scot Morrison, to form the Scotswood Urban Regeneration Vehicle (SURV). The SURV aims to deliver 1,800 homes and a 6,000sq m neighbourhood centre over the next 15 years.
“[The project] could provide a blueprint for similar deals across the UK,” commented Ogden. “The deal involves the creation of a local asset-backed vehicle. It’s a strong but flexible partnership structure that allows the developer and the local authority to share the risks and rewards in these types of regeneration projects.
“We know for a fact that other parties in the private and public sectors are looking at similar initiatives in the light of reduced central budgets for regeneration, and we expect this could be the first of many.”