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£20m Urban Development Fund open for business

09/02/2010

East Midlands Development Agency (emda) has today announced a new £20m Fund to support the development of premises focused on innovation and growth. This will provide much needed investment for schemes – which have been hit hard by the recession and the lack of available finance – that will enhance the region’s offer in terms of innovation, science and technology facilities.

The East Midlands Urban Development Fund (EMUDF) has been set up by emda and has already secured £15m - £5m of which is emda’s own funding, with the additional £10m coming from the European Regional Development Fund (ERDF), which the Agency manages on behalf of the region. The creation of the EMUDF has been supported by key partners from across the East Midlands that work closely with emda to guide ERDF delivery.

As Dr Bryan Jackson, emda’s Chairman, explained: “Generally, ERDF funding is awarded in the form of grants, but the creation of the East Midlands Urban Development Fund allows us to make this funding work harder for the region and generate a greater return on investment for the taxpayer. This Fund is the first UDF in England that is open for business and is taking advantage of new ERDF flexibilities.

“Funding will be offered in the form of equity, loans or guarantees and the EMUDF will make repayable investments in schemes that will secure the future growth and competitiveness of the region. The model we’ve adopted will also ensure that we create a longer term legacy for the region in the form of an ongoing stream of investment.”

The Rt Hon Rosie Winterton MP, Minister for Regional Economic Development and Coordination, added: “I am delighted that the East Midlands Urban Development Fund is now operational. The region and emda are to be congratulated on moving swiftly to take advantage of new ERDF initiatives in order to establish this Fund, which will help create the right environment for innovation, and facilitate much-needed investment in capital development as we move into recovery and look towards future growth. The Fund’s focus on innovation, technology and high quality employment space also closely supports the approach set out in the Growth Strategy we launched last month.”

Following a competitive selection process, the property and finance specialists, King Sturge Financial Services, were appointed at the end of 2009 to manage the Fund and engage with public and private sector partners to identify development opportunities.

Jonathan Bull-Diamond from King Sturge said: “We’re delighted to have been selected by emda to operate the East Midlands Urban Development Fund and look forward to working closely with emda, the Fund Board and partners in the region to ensure it can support exciting development schemes in the region’s urban areas. We are keen to work closely with East Midlands partners to identify potential investments that fit with regional and local priorities and will deliver the best returns for the Fund”.

The EMUDF is the most recent addition to the package of support emda has put in place to help the region’s economy through the challenging economic times. Whilst it is intended to grow the Fund to £20m in the short to medium term, the Fund has been established in such a way that it can be expanded as required after the initial investment phase.

For more information about the Fund or to discuss investment opportunities, please contact Jonathan Bull-Diamond at King Sturge on 07740 542 755 (jonathan.bulldiamond@kingsturge.com) or visit www.eastmidlandsurbandevelopmentfund.co.uk

ENDS

For more information on this press release or to request interviews, please contact Clare Baker (emda’s Communications Manager – Regeneration) on 0115 988 8583 / clarebaker@emd.org.uk

About the East Midlands Urban Development Fund (EMUDF) / European Regional Development Fund (ERDF)

• The EMUDF has been established through a European funding mechanism called JESSICA (Joint European Support for Sustainable Investment in City Areas).

• JESSICA enables ERDF to be used to create Urban Development Funds (UDFs) that will make repayable investments in projects. It also means viable funding packages can be pulled together in order for schemes to proceed. JESSICA also helps public sector bodies continue to address market failure and bring forward priority schemes for which the market cannot provide. This is something that a traditional ERDF grant approach cannot offer.

• The JESSICA UDF in the East Midlands has been established as a company limited by guarantee, known as JESSICA East Midlands (JEM) Ltd.

• The EMUDF will primarily focus on ERDF’s Priority Axis 1 which is about creating the physical environment for businesses to innovate and grow.

• The ERDF Programme nationally aims to strengthen economic and social cohesion in the European Union by supporting regional economic development. Visit www.communities.gov.uk/citiesandregions/european or http://ec.europa.eu/regional_policy/funds/feder/index_en.htm for more information.

• emda is responsible for the programme management and delivery of the region's 2007-13 ERDF Competitiveness Programme. The East Midlands is eligible for €268.5m of ERDF between 2007 and 2013, which when combined with match funding, provides a programme value of approximately €537m - a significant investment in the economic development of the region. For more information, visit www.eastmidlandserdf.org.uk .

• The EMUDF is the first UDF, taking advantage of the JESSICA model, to be open for business in England.

About emda

emda is one of nine Regional Development Agencies in England, set up in 1999 to bring a regional focus to economic development. Ten years on, independent evaluation shows emda has:

• Had a significant impact on the region's economy

• Generated economic benefits that substantially outweigh its overall costs

• Put back over £9 of economic output (or GVA) into the regional economy for every £1 it spends

• Produced more than £1 billion in economic benefits per year

• A wider impact on people, places and businesses in the East Midlands that cannot be captured by figures alone.

emda is committed to supporting the region through the current downturn and has put in place a range of measures to provide real help during these challenging times.

Over the long term, emda’s aim is to deliver the 2006 Regional Economic Strategy (RES) by working in partnership with public, private and voluntary organisations. The RES highlights the themes of productivity, sustainability and equality and sets out key priorities until 2020 to ensure the vision for 'a flourishing region' can be achieved.

For more details, visit www.emda.org.uk

About the King Sturge Group

The East Midlands Urban Development Fund will be operated by King Sturge Financial Services Limited. King Sturge Financial Services Limited, operating within the King Sturge Group, is Authorised and Regulated by the Financial Services Authority for the conduct of investment business. King Sturge is one of the largest international property consultancies in Europe, with a comprehensive network of over 100 wholly owned and associate offices. King Sturge Financial Services Limited operates Unregulated Collective Investment Schemes (UCIS) for investors, generally in the form of a Limited Partnership, unregulated unit trust or Limited Liability Partnership. The funds range in size from £2 million to £100 million and the combined net assets exceed £500 million.

Visit www.eastmidlandsurbandevelopmentfund.co.uk for more information.