Background:
The journey of Torbay Council’s transformative investment plans began at the UKREiiF 2021 event in Leeds. This marked the start of an 18-month collaboration with the REiiCON Team, which has since played a pivotal role in supporting and guiding the council through various investment and development challenges.
Torbay, once a bustling holiday destination, has faced a gradual decline in its tourism sector, a key driver of its local economy. The area, known for its picturesque landscapes and rich cultural heritage, has seen a noticeable reduction in holiday visitors over recent years. This downturn has been further exacerbated by a decline in the retail sector, with high street shops and local businesses struggling to thrive amidst changing consumer habits and economic pressures. These challenges have placed Torbay at a critical juncture, highlighting the urgent need for strategic investment to rejuvenate its economy, revitalize its tourism and retail industries, and restore its status as a vibrant and prosperous region. The situation called for a concerted effort from both public and private entities to inject new life into Torbay, ensuring its long-term economic sustainability and preserving its unique charm for future generations
Initial Engagement:
The first meeting with the Torbay Council team took place in June 2021, following the inaugural UKREiiF event. The REiiCON Team initially worked alongside Torbay Council’s existing advisors, focusing on the Union Square project. This project faced significant viability challenges, as highlighted in a report by JLL and further compounded by the withdrawal of a major public sector Hub from the scheme.
Strategic Interventions:
In addressing the multifaceted challenges faced by Torbay, the REiiCON Team played a crucial role in not only identifying potential partners but also in meticulously shaping and structuring the regeneration plans. Their strategic approach involved tackling risks head-on and addressing viability challenges that were hindering the progress of key projects.
The team’s involvement was pivotal in transforming the Union Square project into an attractive proposition for institutional investors. This was achieved through a comprehensive analysis of the project’s economic feasibility and the implementation of innovative solutions to enhance its viability. By bringing in a specialist in Health Sector funding and a Build-to-Rent (BTR) developer, the REiiCON Team opened new avenues for investment and development, aligning the project with the interests and requirements of major financial players.
Furthermore, the team’s support in the council’s decision to acquire third-party land interests in the shopping centre was a strategic move that significantly bolstered the project’s potential. Completed in November 2022, this acquisition not only resolved existing land ownership issues but also provided a more consolidated and attractive opportunity for investors.
Through these actions, the REiiCON Team demonstrated their expertise in navigating complex development landscapes, ensuring that Torbay’s regeneration plans were not only feasible but also aligned with the expectations and standards of institutional investors. Their ability to adapt and respond to the evolving needs of the project has been instrumental in setting a strong foundation for Torbay’s economic revival and future growth.
Investor Engagement and Development Partner Selection:
Recognising the need for a more proactive approach, the REiiCON Team advised Torbay Council to host a selective investor/developer event in London. This event showcased Torbay’s investment opportunities, economic potential, and the region’s commitment to growth, supported by strong civic leadership and ambitious private sector partners like Jim Parker of Torbay Weekly. It was at this event that the council first connected with Milligan, who would later become a key development partner.
Securing Development Partners and Funding:
In October this year, Torbay Council secured unanimous Cabinet approval to appoint Milligan (alongside Wilmot Dixon) as the development/delivery partner for Union Square and other projects. At UKREiiF 2023, the REiiCON Team facilitated introductions to key institutional funding partners, notably one of the UKs largest pension funds. This led to a high-level event and visit at Torbay Council in August, culminating in the fund proposing an NDA to explore a long-term funding partnership, working alongside Milligan and Wilmot Dixon.
Summary:
The transformative journey of Torbay Council, particularly in the context of the Union Square project, stands as a testament to the pivotal role played by the REiiCON Team. Their deep expertise and extensive experience in the realm of urban regeneration and investment have been fundamental in accelerating the redevelopment process in Torbay.
The REiiCON Team’s strategic guidance went beyond mere problem-solving; they brought a visionary approach to the table, enabling the council to not only overcome initial hurdles but also to leap forward in its development agenda. Their proficiency in identifying and engaging with key partners like Milligan and one of the UKs premier pension funds was crucial in securing relationships that were both strategic and synergistic. This partnership has not only provided the necessary financial backing but also brought in a wealth of expertise in development and project management, crucial for the success of such a large-scale regeneration effort.
Moreover, the team’s ability to effectively manage and mitigate risks, address viability challenges, and present the project in a manner attractive to institutional investors has been a game-changer. Their involvement has meant that the regeneration of Torbay has not just been about redevelopment but also about reimagining and revitalizing the area in a way that aligns with contemporary economic and social dynamics.
The acceleration of the regeneration process in Torbay, under the guidance of the REiiCON Team, is a clear indication of their capability to transform challenges into opportunities. Their strategic foresight and hands-on approach have ensured that the regeneration is not only swift but also sustainable and aligned with the long-term economic and social goals of the Torbay region. This has set a precedent for how targeted expertise and experience can significantly impact the pace and quality of urban redevelopment projects.