Hot topic:

Long term governance and management

CHALLENGES AND OPPORTUNITIES

  • Estate management strategies can help create successful and sustainable communities and drive values over the long term.
  • The long term governance and management of urban regeneration projects and its supporting infrastructure needs to be considered at the pre-development stage and should inform masterplans and building design.
  • Often there are a number of landowners, developers and other stakeholders involved who will have their own agendas, but also some shared objectives – these need to be reconciled within a management framework to avoid a piecemeal approach to governance and management.
  • Developers have an interest in maintaining standards in the short term whilst they are completing their work, but after that community and other stakeholders will have a direct interest in management.  Developers needs to be clear at what stage they can ‘exit’ and how they can transfer liabilities relating to ownership and management.
  • Funding requirements and sources of funding to meet liabilities need to be identified over the short term, to cover both the development period, and the medium/longer term – sometimes funding mechanisms are needed for special infrastructure features which are non-adoptable and where long term management costs cannot be recovered through service charges.
  • Local authorities commonly used to adopt and maintain infrastructure delivered by the private sector, but increasingly, whether due to austerity or a desire to maintain higher standards, alternative mechanisms are being introduced.
  • Purchasers and occupiers of premises require clarity that estate management arrangements are in place before they will commit to purchase/lease premises. Service charges and leaseholders covenants need to be priced and designed to be marketable.
  • These issues are often now reflected in Section 106 Agreements or planning conditions with requirements for Management and Maintenance Schemes for public areas to be approved prior to the commencement of development.

HOW WE CAN HELP – OUR TRACK RECORD

BBP Regeneration bring experience in the design, set-up and implementation of estate management structures for complex mixed use urban regeneration projects.

  • Devising estate management strategies – Vauxhall Nine Elms Battersea Opportunity Area
  • Undertaking detailed financial modelling – Canning Town
  • Setting up estate management vehicles – Chatham Maritime Trust