Morgan Sindall lands £1bn local authority deal
March 22, 2019 – Brentwood Borough Council has chosen Morgan Sindall Investments as its preferred joint venture partner for a 30-year programme of developments worth an estimated £1bn.
The 50:50 joint venture will provide new homes, mixed-use developments, public spaces, commercial and leisure facilities on council land.
Morgan Sindall was one of 15 bidders for the contract, which has yet to be approved by the full council.
It will be Morgan Sindall Investments’ fourth local authority partnership – after Bournemouth, Hertfordshire and Slough, where money raised from land receipts and development profits have helped to fund council 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 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.”
As part of the deal, the council is acting as a central purchasing body through which neighbouring local authorities in Essex may procure a 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, it said.