Durham Riverside Renewal
£120m funding from LaSalle Investment Management secured to deliver Phase One of Milburngate in Durham City Centre
The developers of Milburngate, the mixed-use development, have secured a £120 million forward-funding commitment from LaSalle Investment Management, which will enable the delivery of the first phase of the Durham City Centre project.
In December 2018, detailed planning permission was granted for Phase One, which covers 70 percent of the entire six-acre mixed-use development. The developers are in the final stages of reviewing shortlisted construction tenders and will select their construction partner in the coming weeks. Completion of the first phase is targeted for early 2021.
Tenants already secured for Phase One include nationally-recognised leisure operators including boutique cinema company Everyman, restaurant brands Marston’s Pitcher & Piano, Bar + Block, Miller and Carter and a 92-bed flagship Premier Inn hotel.
Also included in Phase One will be 5,000 square metres speculative office building, creating capacity for more than 400 new jobs, alongside 153 built-to-rent apartments, supporting Durham’s requirement to provide high-quality city centre work and living space.
Milburngate is being delivered in joint venture by Durham-based property business Arlington Real Estate and the Richardson family, who together have already successfully delivered a number of strategically-important regeneration projects across the region, including Freemans Reach in Durham City centre.
Ben Holmes, on behalf of the Richardson family, said: “This is one of the biggest investment deals in the North East of England in the last ten years. It will have a significant positive impact on Durham City and the wider region and demonstrates investor appetite for this type of project.
“Securing this funding from LaSalle, which will ensure the delivery of the first phase of this ambitious project, also demonstrates the confidence this respected financial institution has in the North East and the benefits of regenerating this unique part of this historic city.”
Allan Cook, Managing Director of Arlington Real Estate, said: “We are really pleased to have secured the funding for Phase One with LaSalle, which enables us to now move forward with the first construction phase. It is a testament to both the vision of the team and quality of the scheme that we have secured LaSalle as our funding partner and I’m sure delivery of Phase One will set a new benchmark not only for Durham City, but also the region.”
Robin James, Head of Long Income Transactions at LaSalle Investment Management, said: “We are delighted to have entered into this long-term partnership with Arlington Real Estate and the Richardson family. This mixed-use commercial and residential development will create job opportunities in Durham and is an excellent example of where our client’s capital can be used to deliver major city centre regeneration schemes. We will continue to invest in such projects and have significant funds to deploy in other assets offering long-term, inflation-linked income streams.”
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For further information contact Jamie Collis 01325 363436
Photo caption: CGI of the Milburngate development
Durham Riverside Renewal
The development consortium consists of Arlington Real Estate and the Richardson family.
The project includes the regeneration of Freemans Reach and the redevelopment of Milburngate House, which are on adjacent banks of the River Wear in the heart of Durham City.
According to the Sunday Times 2014 ‘Best Places to Live’ listing:
“Durham is a lovely place to live. Beneath its glorious cathedral, you’ll find pretty cobbled streets stuffed with little independent shops and great watering holes, a beautiful river that carves its way through dramatic walls of rock and greenery, and some attractive house stock – along with a thriving buy-to-let market, thanks to all those students. One of the nicest places to live is South Street, which looks directly onto the cathedral and castle, and which inspired Sir Walter Scott. Many of its terraced houses are grade II listed; prices range from £400,000 to more than £1m.”
About Arlington Real Estate
Arlington Real Estate is also delivering another flagship County Durham development, DurhamGate. Located five miles south of Durham City, DurhamGate is on the site of Black & Decker’s former UK headquarters and, at almost 100 acres, it is among the largest regeneration projects in the North East of England
About the Richardson family
The Richardson family is a private, family-owned and operated property business with over half a century of real estate experience in the UK and overseas. Typically working in joint venture, the business has a long history of successful partnerships, having developed over 6 million sq ft of real estate across all sectors. More recently the family has continued to diversify by building an international growth capital portfolio across a range of sectors through a direct and co-investment programme.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately US$66 billion of private and public equity and private debt investments under management (as of Q3 2018). LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Inc. (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.back to Durham Riverside Renewal