Accelerating surplus public sector land for housing
The public sector is under increasing pressure to deliver new homes and release capital to pay for core services.
With 40% of developable sites owned by the public sector, disposing of surplus public land could create two million new homes. We have the track record, skills and financial strength to help maximise and unlock that capital, accelerate the disposal of land suitable for housing supply, and stimulate economic growth.
The scale of Telereal Trillium’s planning and disposal activity gives us a significant presence in the residential land market. We have a clear understanding of the consented product favoured by house builders enabling us to maximise value by obtaining implementable and financially viable planning consents.
We have a nationwide network of market contacts and advisors, which includes board level connections with many of the major house builders.
Potential private sector solutions
A number of public sector organisations such as the Ministry of Defence and Central Bedfordshire Council are starting to partner with the private sector to promote their surplus land holdings. The public sector retains ownership of the land whilst the private sector funds, manages and leads the planning and disposal process. The private sector is remunerated from the eventual sale proceeds once the enabling capital invested has been reimbursed. Both public and private sector organisations are fully aligned to maximise disposal receipts and minimise costs.
Joint venture co-investment models
There are examples of public sector organisations such as Oxford City Council setting up joint venture partnerships with the private sector to prepare surplus sites for delivery to the market. The public sector organisation makes its land holding available and the private sector co-investor provides all the necessary infrastructure funding and skills required to the joint venture. This model can be set up via a non-OJEU route which can therefore accelerate the development process.
*One Public Estate - LGA/Cabinet Office, Aug 2014
**Savills Research, Nov 2014
Telereal Trillium was appointed onto a 4-year Promoter Framework for Central Bedfordshire Council to fund, manage and lead the planning and disposal process for the Council’s surplus land and buildings. The Framework is open to public authorities/bodies neighbouring Central Bedfordshire Council and also to 17 other local authority members of the Central Buying Consortium.
land and property in public ownership
local authority projected disposal receipts for 2015 - 2018
central government projected disposal receipts for 2015 - 2020
of developable sites owned by the public sector
homes could be delivered from public land