PUBLIC PRIVATE SECTOR JOINT VENTURE STRUCTURES

1
PUBLIC / PRIVATE SECTORJOINT VENTURE STRUCTURES

• Stephen Sorrell
• Partner and Head of Development
• Eversheds

2

• Partnership vehicle structures
• Key issues
• Building Partnerships

3
Partnership vehicle structures (1)

• Current role of an URC
• multifunctional (in URC area)
• URC constitution
• joint venture requirements
• separate financial accounting
• stakeholder representation
• ringfencing the development relationship
• procure funding from the private sector

4
Partnership vehicle structures (2)

• Collaboration
• . leading to development agreements
• Wholly owned subsidiaries of a URC
• the NEM model for NMPB
• Corporate vehicles in joint venture with the
  private sector
• Others?

5
Primary Issues (1)

• Funding efficiency
• Public sector
• state aid
• grant funding
• procurement
• Private sector
• debt funding/funder friendly
• security
• guarantee
• off balance sheet

6
Issues (2)

• Holding development land .. but
• stamp duty
• environment issues
• tax/vat

7
Issues (3)

• Constitutional, vires and powers
• Best consideration/Best value
• Capital Finance Regulations
• DTLR/DTI consents
• Local Government Act 2000
• Controlled / Regulated Companies

8
Issues (4)

• Procurement
• Passing the development risks
• EU Rules
• Vehicle acting as agent
• Transparent and market terms

9
Building the Partnership (1)

• Stewardship of development programme
• who will direct
• masterplanning
• phasing
• procurement
• Hearts and minds
• equity share
• risk/reward
• future relationships

10
Building the Partnership (2)

• Recycling development receipts
• a shareholder issue
• will the private sector agree?
• is the vehicle single purpose?
• Participation by others
• stakeholders on the board?
• steering group?

11
Conclusion

• Developers are enthusiastic and accept structures
• Tried and tested!
• Control and direction
• Procurement
• PARTNERSHIP