Strategic partnerships

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We leverage our equity and expertise by working with selected partners whose strengths and skills are complementary with our own.

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Manchester Arena Complex
Wessex Investors

CTP
Barwood

Beyond Green

Manchester Arena Complex

The Manchester Arena Complex was the Group’s most significant acquisition in 2010. The purchase was concluded in June, and the joint venture formally completed in August. The Arena is the largest indoor venue in Europe and attracts over one million visitors per annum. Immediately following acquisition, we re-geared the lease on the Arena to the incumbent operator allowing us to make an immediate revaluation gain of £9.5 million, of which the Group’s share was £2.8 million. We are pursuing further asset management initiatives identified in conjunction with our partners, Patron Capital Partners. We regard this transaction as the beginning of an investment management activity, adopting similar principles to our development business and leveraging off our long-term performance track record.

CTP

CTP, our associate company based in Manchester, has successfully completed several developments and continues to review a number of potential new schemes.

In November practical completion was reached on a 35,000 sq. ft. food store in Neston, Lancashire13, pre-sold to Sainsbury's. In October CTP also achieved practical completion of a mixed-use scheme in Kensington, Liverpool where the majority of the accommodation had been let or sold by practical completion.

Planning permission has been achieved for a 100,000 sq. ft. food store in Hattersley, Greater Manchester14. Terms are under discussion for forward-funding, and CTP expects to commence work on site in the first half of 2011.

CTP has identified three new projects with similar characteristics to those acquired by the Group, where the ability to introduce both equity and expertise will be rewarded with higher than normal risk-adjusted returns.

Beyond Green

Beyond Green Developments (formerly Blue Living) specialises in sustainable development with a focus on urban extensions. We are working with them to bring forward selected large developments designed and planned on sustainable principles. During the year the team has continued to pursue a planning appeal for a major scheme in Tilehurst, near Reading in Berkshire15. In addition, they have secured a promotion agreement for a 3,500 residential unit scheme in Norwich, in respect of which it is intended to submit a planning application during 2011.

Wessex Investors

Wessex Investors are our local partners in the West Country, working with us to implement individual asset improvement plans, and to bring forward new opportunities.

In Plymouth we have acquired an existing hotel on a site with potential for retail-led redevelopment. The hotel will be operated under a management contract to produce income whilst the planning strategy is progressed. This type of complicated development proposition is not untypical of those we are seeing, offering significant upside with limited downside risk.

Barwood

Since entering our strategic land promotion venture with Barwood Group, we have been pleased with progress on each of the secured projects, although the recent major revisions to the planning system have prompted a review of our approach in each case. The venture has obtained planning consents on two smaller sites which will now be sold in the open market to capitalise on the shortage of supply to the market of smaller parcels of land.