Partner Article

Growing Places Fund - your property questions answered

Kevan Carrick, principal of JK Property Consultants LLP and a voluntary independent member of the Growing Places Fund investment panel.

What is the Growing Places Fund (GPF)?

The government launched the GPF in 2011, providing £500m to address infrastructure constraints, promote economic growth and deliver much-needed jobs and houses. The North East LEP secured £25m for developments within the region and its fund opened for bids earlier this year.

Why is the GPF needed?

When the recession hit, development in the North East stalled due to low demand and shortage of finance. Only ‘property hot spots’ such as student accommodation and leisure bucked the trend. Three years on, there are numerous sites that following development could have a positive impact on the local economy but enabling work is required before construction can begin. The aim of the GPF is to help kickstart activity by plugging a funding gap and the money is being made available for infrastructure, remediation and site services.

What type of development is being sought?

A wide range of developments could benefit from the GPF for the good of the region. For example, there is a reducing supply of office space in Newcastle city centre, just as there is a shortage of supply of industrial space in the prime location ‘box’ of Gateshead, A19, Washington and A1 and ideally this should be addressed. Retail could do with a boost in secondary and tertiary locations because only prime locations have enjoyed recent investment. Equally, brownfield regeneration remains a challenging area to work in and could do with a boost if we are to see more affordable and social housing. Ultimately the developments being sought are those that fit the GPF criteria and can make difference to the local economy.

What is the selection criteria for the GPF?

The North East LEP’s GPF selection criteria is as follows:

- The project must be a strategic fit with the North East LEP’s objectives in that the investment will boost economic growth or deliver vital infrastructure.

- The project must be ready to start and have match funding in place.

- A funding gap means the initiative can only happen with investment from the GPF.

- The money should be able to be repaid swiftly to allow for reinvestment.

Are any applications likely to be given priority?

Developments that are ‘oven ready’ are more likely to be successful in the application process. This means sites with planning permission in place, with the land ownership secured and ready to start without delay will be prioritised because the turnover time will be faster, allowing the money to be repaid and then reinvested in another scheme. The North East LEP’s objective is to share the wealth to have the biggest economic in the shortest timeframe possible.

For more information on the GPF, please visit: www.nelep.co.uk or contact Kevan Carrick at JK Property Consultants on 0191 406 0038.

This was posted in Bdaily's Members' News section by Kevan Carrick .