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.kingsturge.co.uk/consultancy)