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.

Fund snapshot

What does it invest in?

• Commercial-led real estate development projects that the private sector wouldn’t deliver alone – or where involvement of ERF could generate greater benefits for Essex residents and businesses.
• Business accommodation or development land, potentially combined with residential uses. The fund does not invest in community or renewable energy infrastructure unless ancillary to these uses.
• Projects that support Essex town centres and high streets, invest in our new Garden Communities, and nurture the five key growth sectors for Essex identified in the Essex Sector Development Strategy
• Projects 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.
  

What kinds of projects might be eligible?

• A vacant commercial property on 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.
• Business accommodation in a new Garden Community – the fund might acquire a plot of land to deliver an early phase of employment uses, proving demand and values.
• 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?

• Direct risk and reward – ERF does not provide development finance or grant funding to other parties.
• While it is anticipated that the fund will invest over £100 million by 2042, peak debt is expected to remain under £27.5 million at any one time, with a maximum investment of £12.5 million per project.
• Other considerations include compliance with Public Works Loan Board borrowing guidance and ensuring value for money for taxpayers.

Performance

• ERF has different financial hurdle rates depending on the type of project and its level of contribution towards a Net Zero Carbon future.
• The fund’s projects will be added to the council’s capital programme and sit alongside the activity of  Essex Housing.

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; email ERF@montagu-evans.co.uk  or
• Ricky Thakrar at Essex County Council; email ERF@essex.gov.uk