LaSalle invests £120M in North East England MUD

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The mixed-use development will include a 92-room Premier Inn. Photo credit: Premier Inn

In North East England, plans to build a large mixed-use development (MUD) in Durham got a boost from LaSalle Investment Management with a forward-funding commitment of £120 million that will support the first phase of development.

The complex will include office space, housing and leisure facilities as well as a 92-room Premier Inn. Construction of phase one is expected to be completed in 2021. 

The development is supported by a joint venture of Durham-based property business Arlington Real Estate and the Richardson family, who have worked together on several other regeneration projects across North East England. 

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“This is one of the biggest investment deals in the North East of England in the last 10 years,” said a Richardson family representative. “It will have a significant positive impact on Durham City and the wider region and demonstrates investor appetite for this type of project.” The funding, the representative added, was a sign of LaSalle's confidence in the region, and the city in particular.

“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-center regeneration schemes,” said Robin James, head of long-income transactions at LaSalle Investment Management. “We will continue to invest in such projects and have significant funds to deploy in other assets offering long-term, inflation-linked income streams.”

As noted last week, hotels in England's northern areas attracted more than £1 billion of investment in 2018. According to read estate advisor Savills, total investment in the region reached £1.11 billion for the year, and the north accounted for 17 percent of 2018's total U.K. hotel transactions, which came to £6.6 billion.