LSH have advised Rochdale MBC on the development, financial structure and funding of a 200,000 sq ft (£75 million) new build, retail and leisure complex development in Rochdale Town Centre being developed in partnership with Rochdale MBC, Genr8/Kajima and M&G Real Estate. LSH are acting as lead strategic property adviser on funding, planning and market analysis to ensure the Rochdale Riverside scheme becomes a reality for the borough and client.

Our Role and Objective

Supporting the client on its town centre regeneration objectives including the rationale to deliver a new retail and leisure complex to support the local community;

• Feasibility analyses of appropriate uses to support delivery
• Analysis of financial structures to facilitate delivery
• Identification and negotiations with developers to balance risk and reward
• Negotiation of appropriate Rochdale Borough Council for an over-riding lease structure to support funding but at the same time minimise Local Authority risk

• Initial strategy (Development, Capital Markets, Retail/Leisure Agency)
• Development advisory
• Lettings (Retail/Leisure Agency)
• Funding (Capital Markets)

Results

• Analysis of innovative funding structures (income strips/PWLB etc) to support delivery of a £75m development
• Securing retail/leisure pre-lets to substantiate funding structure, viability and deliverability
• Positioning the opportunity to attract institutional forward funding partners leading to the successful negotiation of a transaction with M&G Real Estate

Challenges

• Securing Pre-lets to support the strategy
• Engaging and securing Council support for the implementation of an innovative funding structure
• Accurately assessing risks and rewards for the RBC in terms of financial, place-making, community and long-term policy objectives.
• Putting in place a financial package that would attract institutional funding