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London council seeks private development partner for regeneration schemes
A London council is on the hunt for a private joint venture (JV) partner to regenerate three major sites, but acknowledged the controversial nature of such schemes.
Harrow Council’s cabinet last week gave the green light to find a strategic development partner for the three publicly owned sites.
Under the Harrow Strategic Development Partnership, the JV will own the 11.4 acre Poet’s Corner, 1.7 acre Peel Road and 3.7 acres of a site known as Byron Quarter.
The 50/50 partnership between the council and the developer will be structured as a limited liability partnership (LLP) lasting up to 35 years.
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Deals like this have proved contentious, the most high-profile example being Haringey Council’s now abandoned £4bn JV with giant Australian developer Lendlease.
However, the High Court ruled last year that councils are allowed to use LLPs to create JVs with private firms for regeneration schemes.
A report to Harrow Council’s cabinet said JVs provide “the greatest chance of achieving regeneration and development on a scale consistent with the council’s ambitions and objectives and enabling the wider economic and social benefits the council requires”.
It later noted that the “legality” of forming such partnerships had been questioned in the courts. But the report added: “Local authorities must identify the statutory powers and the purpose of incorporating the commercial vehicle before progressing such an approach.”
“The major role of the development partner will be to work alongside the council to deliver regeneration, new homes, social and economic benefits and a sense of place.”
It is unclear yet how many of the homes will be affordable housing or for social rent.
Elsewhere in Harrow, Transport for London is working with housebuilding giant Redrow redeveloping the area around Harrow-on-the-Hill’s Tube, train and bus stations.
