local authority finance

 

London Borough of Barnet

– Brent Cross Cricklewood Regeneration

 

Brent Cross Cricklewood redevelopment projectThe Assignment

31ten Consultants were commissioned to support the Council to develop its approach to the Brent Cross Cricklewood regeneration scheme; a scheme covering a 151 ha site with a planning permission comprising of approximately 111,000 sq. m. of new mixed retail, 710,000 sq. m. of residential, 482,000 sq. m. of office, industrial and leisure uses and 26,000 sq. m. of community uses.

Members of our team led the financial and strategic advice assisting the parties in re-phasing the scheme with outline planning consent to bring forward the development to the north of the A406 first and to support them in developing its approach to the south site, and to procure a new development partner to bring forward the development.


Our Role

Members of our team led the financial and elements of the strategic advice including:
• Advising the Council on achieving the best commercial deal;
• Developing a preferred approach for the site that delivers capital and revenue receipts;
• Develop the funding approach to the site by exploring the use of new funding streams and innovative delivery mechanisms in order to deliver a major rail station alongside a viable scheme; and
• Develop the approach to the delivery of the scheme including potentially partnering with a development partner. Advice in this area included appraisal of potential approaches and the procurement route to be followed.


Key Outcomes
Our work enabled the Council to separate the North and South site into two separate but interlinked schemes. We developed with the Council an innovative funding approach to forward fund the rail station using a combination of grant funding and securitised business rates income that has enabled a viable scheme to be brought forward.


Client Citation
The team developed an innovative funding strategy that brought together the potential to fund the development from enhanced land receipts, alongside the use of our prudential borrowing powers underpinned by the potential ringfencing of business rates receipts through the Enterprise Zone model. The team developed a bespoke financial model that the Council has used to model the risks and rewards of this approach and worked in partnership with us in taking this approach to the GLA, DCLG and HM Treasury. This approach took a fundamentally unviable scheme and developed a potentially deliverable scheme that is in advanced discussions through DCLG and HM Treasury.

The team brought considerable insight to the Brent Cross Cricklewood project and worked collaboratively with the internal finance and regeneration teams in the process. This assignment has been a valuable part of ensuring that the overall regeneration project succeeds.

John Hooton, Deputy Chief Operating Officer