Essex Renewal Fund

Fund aim

The Essex Renewal Fund (ERF) invests directly in land and property projects that support Essex County Council’s commitments to good jobs, future growth and investment, green growth and levelling up the economy.

The fund is currently seeking to invest in projects that the private sector will not deliver in a timely manner, leveraging the council’s access to Public Works Loan Board finance, its ability to secure grant funding, and its own landholdings.

In particular, ERF is looking for:

• Brownfield industrial sites with buildings at risk of obsolescence, offering potential to replace with modern grow-on space units.
• Greenfield or brownfield sites that are situated in employment areas, town centres, high streets and urban locations which offer up development or refurbishment opportunities.
• Both on- and off-market opportunities, with a particular focus on schemes that have stalled or have not started the delivery process yet due to viability constraints.

Fund snapshot

What does it invest in?

• Commercial-led real estate development or refurbishment projects that the private sector wouldn’t deliver alone – or where involvement of ERF could generate greater benefits for Essex residents and businesses, such as lower energy bills.
• Development land, including for residential use. This may include investing in the promotion of land through the planning system or enabling works to facilitate new development.

Please note that the fund does not invest in either renewable energy infrastructure or community infrastructure, unless ancillary to commercial uses.

WhERE does it invest?

• Within the administrative area of Essex County Council (this excludes Southend and Thurrock), with a focus on the council’s priority places of Basildon and Colchester housing estates, Canvey Island, Harlow, rural Braintree, and Tendring.
• The fund also has a focus on projects that support Essex town centres and high streets, our new Garden Communities, and places where we can nurture the five key growth sectors identified in the Essex Sector Development Strategy.

What kinds of projects might be eligible?

• An underutilised site in one of the council’s Priority Places – ERF might act as a master developer, securing planning permission, delivering any strategic infrastructure and enabling works, before disposing of the property to the private sector for onward delivery of the proposed scheme.
• Business accommodation in a new community – The fund might acquire a plot of land to deliver an early phase of employment uses as part of a wider development, proving demand and values for later phases.
• Public-private partnership to accelerate a new innovation district – The fund might partner with private developers and/or local councils to kickstart development of a new employment area focused on one of Essex’s five key growth sectors.

How does it invest?

• ERF takes direct risk and reward with a view to making a return on investment – the fund does not provide development finance or grant funding to other parties. ERF has different financial hurdle rates depending on the type of project and its level of contribution towards energy efficiency.
• By 2042, ERF is anticipated to invest over £100 million. The fund can invest up to £12.5m in each project it decides to take forward – this figure reflects the all-in up-front investment into a site, to include any purchase of land and all capital expenditure up to the point of exit. ERF may invest in projects with a larger lot size alongside partners.
• Other considerations include compliance with Public Works Loan Board borrowing guidance and ensuring value for money for taxpayers.

ENQUIRIES

Who should enquire?

• The fund managers welcome enquiries from agents, developers, landowners and scheme promoters.

FUND MANAGERS

If you have a potential development site or partnership opportunity that falls within our investment criteria, please enquire by contacting:

• Kevin White at Montagu Evans
• Ricky Thakrar at Essex County Council