Sheffield City Council develops city investment fund to create a new generation city centre
12 March 2014
Sheffield City Council has announced plans to form the Sheffield Investment Fund.
The Fund is being created to allow the Council and its partners to unlock critical development across Sheffield city centre.
A key provision of the Fund is that it will enable collaboration with new development and investment partners. This innovative approach of local government working in partnership with the private sector, will focus on creating a distinctive city centre to cement Sheffield’s position as one of the UK’s leading cities and further its economic and social success.
This particular investment approach will also enable future phases of improvement in the city through acquisition and asset management.
The Fund will initially be wholly owned by Sheffield City Council who will be able to inject both the land holdings that it controls, and the Tax Incremental Finance (TiF) required for vital infrastructure, into it.
The Fund, due to be officially launched in the summer of 2014, will be managed by CBRE Capital Advisors, who will develop an investment and stewardship model for the city.
The Council and CBRE Capital Advisors will then engage actively with both the investment and developer markets to attract finance and expertise to deliver future city centre projects.
Councillor Leigh Bramall Cabinet Member for Business, Skills and Development at Sheffield City Council said: “We are taking a new approach to developing Sheffield city centre. We are setting up the city centre fund to speed up the delivery of key projects. Project number one will be the New Retail Quarter.
“The market has moved, retail has changed, and we intend to capitalise on this and deliver the promised outcome for the city centre. This is about us achieving the same results with a different approach. Taking control of our destiny by working hand in hand with the private sector so that we can make effective use of all the tools we have available like Tax Incremental Finance through our New Development Deal with Government as well as land holdings we have.”
Sheffield City Council is now seeking to secure development and investment partners to deliver the New Retail Quarter, a retail and leisure led scheme in the city centre of up to 600,000 square feet. This development will be the first major stage of investment activity, generating major uplifts in income and capital value with subsequent business rate growth.
Sheffield has already had great success in terms of its regeneration, not least in its public realm. As the market recovers the Council wants the pace of development to accelerate.
Cllr Bramall continued: “This is about us adopting a different, more innovative approach, just like the work currently underway with St Paul’s 3, bringing much needed grade A office space to the city and a potential 700 additional jobs.
“We will work in partnership with the private sector to bring further investment to Sheffield and deliver what is probably the most exciting development opportunity in the UK at this time.”
Cushman & Wakefield and Lunson Mitchenall are retained consultants to the City Council.