A new city-owned development fund

Amy — Thu, 12 May 2022 08:01:58 +0000

A new way of developing cities

Research for a new city-owned development plan takes the next step.

Global City Futures have been given the go ahead to progress a new city development concept; the Exeter Development Fund, supported by One Public Estate. Find a link to the Outline Business Case delivered for Exeter City Futures, below.

Global City Futures has been working with public institutions in Exeter to identify sites for a possible 12,000 climate-ready, healthy new homes for one of the fastest growing cities in the UK.

Numerous benefits for Exeter

Roli Martin, Head of Finance at Global City Futures said “We believe the funding and delivery model we have created has the potential to raise the investment needed across the UK for modern city infrastructure. The Outline Business Case for the Exeter Development Fund has been agreed this month by the Cabinet Office and One Public Estate.”

The Fund is a replicable, innovative concept. It is a collaboratively owned, public sector infrastructure fund at a city regional level.”

The Exeter Development Fund is envisioned to:

be public-sector owned across the city;
be professionally run;
be impact driven with Exeter place-making at its heart; and
recycle all profit back into the city’s future development projects.

The outline business case sets out how numerous benefits could come to Devon’s capital city, including 12k new sustainable homes designed in such a way as to minimise resident’s fuel bills; with a minimum of 35% proposed to be offered as affordable housing.

Download the 152-page pdf document here:
The Exeter Development Fund Outline Business Case

A 21st century city

Potentially these could be congestion-free communities, designed to prioritise walking and cycling, with easy access to shops and leisure, making ‘15 minute communities’. The plan, if successful, includes high-quality green spaces for socialising and relaxation, and it is envisaged that new employment opportunities will be created to support the new homes.

The concept of the Exeter development Fund is that it would pool assets from across the public sector in the city to give it secure borrowing capacity. In Exeter, the development of the Fund is supported by Exeter City Council, the University of Exeter, the Royal Devon and Exeter NHS Trust and Exeter College.

The Fund would operate grant free, using equity from government, both central and locally.

Developed by Global City Futures for Exeter city, this innovative fund would ensure that control of developing land remained with the city – not developers. This Global City Futures model could be scaled and replicated across the UK.

Net zero aims

Karime Hassan, Chief Executive of Exeter City Council and Exeter City Futures said “Private sector developers don’t always for deliver for Exeter in a way that aligns with the vision for the city in the next two decades. Property developers’ accountability to their shareholders will usually have a greater motivation than their accountability to the residents of Exeter, and we need to change that.”

When equity is controlled in the public sector, this will strengthen placemaking for the city, giving greater control and opportunity to realise the policy intent and vision of the local plan, from levelling up through to tangible sustainability. On top of this, profits are retained and recycled into the city’s next project.”

The next stage is for financial consultants at Global City Futures to develop a Full Business Case, including consultation with local communities and taking on their needs and concerns. The hope is to have The Exeter Development Fund in place to support the city’s 2030 net zero aims.

Related portfolio items:
Next phase of Exeter Development Fund
Exeter Development Fund

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Exeter Development Fund

Amy — Thu, 27 Feb 2020 13:15:00 +0000

The Challenge

Centre For Cities named Exeter as one of the fastest growing cities in the UK. The Greater Exeter region is set to deliver up to 50,000 houses over the next 20 years as part of its strategic plan, 12,000 of which are required within the city itself to promote regional growth and as part of the city’s urban densification plans. This will see approximately £10bn of private money and £2bn of public funds invested in the region.

Based on current trends, much of this new housing will be delivered by exploiting existing road infrastructure and, unless innovative solutions are found, will bring increased pressure on affordable housing, the transport network, employment and the environment. This can lead to planning blockages and hampered development, thus leaving land value trapped, infrastructure under-funded and, ultimately, the city’s growth potential unrealised.

Bridging the gap between sustainable, truly environmentally responsible infrastructure solutions and investible business models is a constant challenge for governments and the markets. The city recognises this challenge and has made an intervention now, with the implicit understanding that whoever controls funding ultimately controls outcomes.

Our Solution

Global City Futures has created an innovative and sustainable funding solution and is now working with Exeter’s stakeholders and Government to develop the business case that enables the city and its residents to have devolved control and ownership over city developments that focus on outcomes first.

To that end, we pitched for and won, on behalf of the city, £200k of Government funding to deliver a business case investment prospectus.

Predicated on the city’s ambitious Liveable Exeter programme, we are working on a 12,000 home placemaking project delivered by a standalone vehicle that:

is public-sector owned across the city;
is professionally run;
is impact driven with Exeter place-making at its heart; and
recycles all its profits back into the city’s future development projects.

This feeds into an over-arching plan to deliver 12,000 homes, sustainable transport and energy infrastructure needed for the city’s Liveable Exeter programme. This business case is for Government submission to help facilitate additional support and discussions with the infrastructure finance market.

Since securing this funding, our team is now working alongside Homes England’s endeavour to support the city’s Liveable Exeter programme for 12,000 new homes within the city.

This project is being delivered through the collaborative governance structure provided by Exeter City Futures, which ensures the engagement of key city stakeholders, which are essential for scaling-up the project, following a successful pilot scheme.

The Result

We are working closely with Homes England. The agency has committed £750k capacity funding to the Liveable Exeter programme, to deliver a credible financing and delivery model to Government and the markets for:

12,000 new dwellings within the city
Commercial rented space for 9000+ jobs
Potential for £3-4bn capital receipts value
Technology and innovation hub accommodation
New sustainable and carbon reduced transport infrastructure
Cycle network, walkways and alternatives to private cars
New public sector administration buildings space
New leisure facilities
Renewable and independent energy networks
Up to 18,000 new construction jobs

Project Lead, Partners & Stakeholders

The post Exeter Development Fund appeared first on Global City Futures.

Funding and Commercial Delivery Models Archives - Global City Futures

A new city-owned development fund

A new city-owned development fund

A new way of developing cities

Numerous benefits for Exeter

A 21st century city

Net zero aims

Exeter Development Fund

Exeter Development Fund

The Challenge

Our Solution

The Result

Project Lead, Partners & Stakeholders