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.
“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.