Advantage West Midlands confirms backing for property sector
Mar 9 2009 by Alun Thorne, Birmingham Post
Advantage West Midlands remains a strong and reliable partner to the commercial property sector during the economic downturn, committed to ploughing millions of pounds worth of investment into the some of the region’s biggest and highest-profile physical regeneration projects.
That will be the message delivered by the regional development agency’s chief executive Mick Laverty to an audience of influential property investment figures gathered at MIPIM 2009, the world’s biggest land and property exhibition in Cannes.
The land, property and construction sectors were the first to be affected by the dip in economic fortunes, Mr Laverty will say, so it was essential that Advantage West Midlands kept major physical developments going.
The Agency had invested £200 million between 2005-08 in a string of flagship projects across the West Midlands region – and partnership working between the public and private sector was already beginning to pay dividends.
At Ansty Park, near Coventry – a site visited by Prime Minister Gordon Brown a month ago – Swedish telecommunications giant Ericsson is set to become the first occupant when construction is completed on two research and development buildings in May this year, employing up to 850 people.
In Stoke-on-Trent, the Central Business District, a £230 million office-led development in the city centre, reaches a milestone at MIPIM this week with the announcement of a successful preferred developer to carry the project forward.
And in Birmingham, the Gateway Project at New Street Station, the £100 million investment by Advantage West Midlands in 2008 is still the largest investment in a single regeneration project by any regional development agency in the country.
“Make no mistake, these projects are going to happen.
‘‘Advantage West Midlands is here for the long haul, driving these physical developments forward, creating jobs and changing lives long after the global economy has picked itself up and brushed itself down.”
Businesses in the West Midlands were also getting real help from a range of financial support and advice available during the downturn.
The Advantage Transition Bridge Fund was providing finance for viable recession-hit businesses and the SupportWM website was acting as a central point of contact for businesses, individuals and communities.
“But we are also aware that we have a key role to play in making sure developments are not shelved as a result of investor confidence faltering,” Mr Laverty will say.
A £50 million gap funding programme had received 80 expressions of interest, meaning schemes will proceed with the appropriate level of public sector support. A Regional Infrastructure Fund was acting as a catalyst to lever in additional funding into projects that might not otherwise be delivered in current market conditions.
Private funding for development projects was extremely difficult to obtain so the Agency was pursuing two specific routes to progess projects, Mr Laverty will say.
“We have a number of joint ventures in place and in some instances we are proposing to take a greater stake and allow the funds generated to be re-invested to maintain progress.
“Secondly, Advantage West Midlands is undertaking activities directly to progress some developments during the recession such as constructing new infrastructure, decontaminating land or obtaining planning permissions, thereby reducing the lag period.
“We still have to develop our sites and we need commercial developers to help us do this.
‘‘At the same time, we want to help you in delivering the projects that you are all working on.
“While times are hard, we all need to remember they will get better and in Advantage West Midlands you have a strong and reliable partner to provide support.”
