Lancashire markets £3.5bn asset vehicle

Lancashire County Council is seeking to procure two regeneration property partners to deliver ten years of development on publicly owned sites throughout the sub-region.

The public-private partnerships with the county, Lancashire Enterprise Partnership and other public authorities is aimed at delivering "comprehensive regeneration across Lancashire through the structured development of public sector assets."

Each regeneration partner will handle asset management, masterplanning, construction and management for the whole of the public sector estate in Lancashire.

There may be a series of local asset backed vehicles established for particular assets or parts of the portfolio if required.

The estimated value of the county council's property assets excluding schools in operational use, waste plants and infrastructure is £280m. The estimated combined value of other Lancashire organisations' assets – including local authorities and public sector organisations such as NHS and Homes & Communities Agency – is in the region of £736m to £3.464bn. Over the initial ten-year term of each partnership, it is anticipated that between 20% and 50% of the County Council's property assets and 20% to 50% of the Lancashire organisations' property assets will become surplus to operational requirements.

The two lots on offer are:

  • Lot 1: Covering Blackburn with Darwen, Burnley, Hyndburn, Pendle, Ribble Valley, Rossendale and Lancaster. Estimated value of county council assets £120m. Estimated value of Lancashire organisations' property assets between £368m and £1.732bn.
  • Lot 2: Blackpool, Chorley, Fylde, Preston, South Ribble, Wyre and West Lancashire. Estimated value of county council assets £160m. Estimated value of Lancashire organisations' between £368m and £1.732bn.

The County Council and LEP listed more than 25 other organisations from all the unitary and district councils to the Ministry of Defence, University of Central Lancashire and fire service as contributors of assets to the new vehicles.

A shortlist is expected to be drawn up by the end of April.

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