Promenade and BXB form land acquisition partnership

Liverpool-based developer Promenade Estates has formed a joint venture with remediation and planning business BXB to acquire brownfield sites across the North West.

The newly-formed joint venture is looking to target large brownfield sites considered too risky to develop by social landlords and private developers.

The JV has already agreed a deal for an undisclosed former industrial site in the North West, and is negotiating on a number of other opportunities, according to Promenade Estates chairman Peter Hynd.

The sites are to be acquired from PLCs, utilities companies, and Government agencies; BXB’s skillset will be used to bring the sites to market as de-risked development opportunities. Mason Owen is advising the JV on its current and future acquisitions.

Promenade has built up an investment fund in recent months with the disposal of several assets, including Marine Point in New Brighton to Aprirose; the Ramada Plaza leisure scheme in Southport to Bliss Estates; and a major waterfront residential scheme overlooking Liverpool’s Albert Dock to Vista Fund. Its most recent disposal was The Observatory office building in Queen Square, pictured above, to housing group Torus.

“Our JV is an intelligent combination of skills and resources to address a major strategic issue for both government and house builders.  If we can free up more brownfield land we can speed up the supply of homes without eating in to the Green Belt,” said Hynd.

Gary Goodman of BXB added: “There are very few companies with our combination of skills and resources to apply in this context and our first deal, which we will be able to announce shortly, demonstrates that major corporations understand that we make good custodians for their legacy land.  Our professionalism enhances their reputation as they withdraw from a site.

“We can also acquire difficult, surplus sites owned by large corporations so that they can divest of liabilities and secure cash to invest in their core businesses.  We remove risk from their balance sheet whilst generating cash for them.”

Promenade Estates was advised by Hill Dickinson, while BXB was advised by Bermans on the formation of the joint venture.