The tie-up will create the UK’s first Local Asset Backed Vehicle (LABV).
The£450m joint venture is designed to regenerate a number of significant sites across Croydon town centre and deliver a new council headquarters building.
Under the public private partnership, Croydon will invest land and John Laing equity into an asset backed Urban Regeneration Vehicle (URV).
Through this limited liability partnership, the council will receive a 50/50 share in profits and maintain ongoing control over the regeneration of the town centre by via its interest as a partner-landowner and planning powers.
The URV will carry out the phased regeneration of four important town centre sites which will deliver approximately 1250 residential units including 650 flats in two 40 storey towers containing approximately 650 flats. The vehicle aims to deliver the project between 2012 and 2107.
The project also includes the delivery of a brand new 240,000 sq ft headquarters office building for the council. Croydon aims to use its profits from the sale and development of the site to pay for the new building and running costs for many years.
Councillor Tim Pollard, Croydon’s cabinet member for regeneration and economic development (Con), said: “This partnership approach is at the cutting edge of the public and private sectors working together. The creation of the URV paves the way for John Laing to support us in delivering our strategic regeneration plans over the coming years.