Rochdale

Our work - 31/12/2018

Rochdale Riverside: advising on £75m retail & leisure complex

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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

LSH Team Involvement
  • 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