Development agency gets property partner

The regional development agency is transferring about 30 brownfield sites - mainly business parks and industrial land - into a property regeneration partnership following the success of a similar scheme in 2004.

One will retain a 50 per cent stake in the 15-year partnership - or One NorthEast Development Initiative (Onedi) - and is guaranteed at least the book asset value of the properties, plus 50 per cent of the profits.

A tender process to attract One's private partner was launched this week and it is anticipated that Onedi will be operational before next April.

The joint venture will not include One's land and properties held in partnership with the region's urban regeneration companies, or its stake in Newcastle's Science City project.

John Holmes, One's director of regeneration, said: "This project will improve the agency's approach to the management and development part of its retained portfolio of development sites by bringing private sector's expertise and investment into the regeneration process at a much earlier stage.

"It will also provide an additional vehicle for delivering some of the agency's physical regeneration priorities across the region."

Contrary to over-estimated reports that the portfolio could be worth about £100m, One yesterday said it was unable to put a put a price tag on it due to the commercially sensitive nature of the tender.

The tender process is being managed by property and land service specialists King Sturge.

Andrew Ludiman, of King Sturge, an advisor to One, said: "We are confident that not only will the project help One NorthEast to deliver and fulfil its core objectives, but that it will also prove attractive to the private sector market."

Onedi builds on the success of the Buildings for Business Partnership, which saw One team up with Gateshead-based property company UK Land Estates in 2004 to manage 50 per cent of its property portfolio.