Growth in UK public-private property partnerships expected

Experts in the property industry have suggested that public-private property partnerships will gain popularity in the UK over the next five years to meet the growing demand for housing and the challenges facing the sector, such as climate change. and sustainability.

XYZ Law Solicitors and Commercial Real Estate Advisers Avison Young asked people who had advised and completed public-private partnerships (PPPs) in real estate earlier this year – two-thirds of those surveyed said they believed that there would be an increase in the amount of partnerships brought to market over the next five years.

Respondents, who together have over 500 years of experience and have worked on more than 100 deals collectively valued at over £ 30bn, identified the opportunity to share risk, access skills and better focus on delivering projects as the main drivers of public-private partnerships.

When local government and the private sector work together, the results can be truly exceptional.

“Partnerships offer real benefits to the public and private sectors if they are established effectively and work well”, “With the time, money and effort put into each partnership, the public and private sectors want more engagement and sharing. around best practices, industry trends and networks related to modern partnerships. Together, more than ever, modern partnerships must produce social and economic results and not just real estate products. “

Some of the traits respondents associate with successful public-private real estate partnerships include strong leadership and a clear vision, “quality and continuity” of the teams involved, the need for “thorough preparation” before going to market partnerships and trust between partners.
Common reasons why some public-private property partnerships fail include “inconsistent thinking” permeating the project; an assumption that the acceptance of a partnership will in itself automatically lead to profitability; and partners pulling in different directions.

“Persistent confrontational or unrealistic demands on either side risk eroding the trust and respect that will be needed to ensure that the partnership works well together once in place,” the report said. “Respondents stressed the need for both parties to bear this in mind in the way offers, negotiations and representations are conducted.”

Anis Dadu of XYZ Law, said that local authorities and real estate companies who recognize the ingredients of a successful modern partnership and work hard from the start to prevent problems from materializing later are best placed to deliver the goods. real estate that the UK needs.

“The challenges we face across the UK and beyond, through Brexit, climate change and Covid-19 to name a few, have not dampened enthusiasm for property based PPPs”, he said. “In fact, we are seeing a growing appetite to create resilient structures capable of adapting to the unprecedented economic, environmental and social changes that are no doubt looming in our direction”.

“When local government and the private sector work together, the results can be truly exceptional: our survey results show strong support for carefully created and managed partnerships, where lessons learned are used to create real additionality,” he declared.

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