Essex Renewal Fund

Fund aim

The Essex Renewal Fund (“ERF”) invests directly in land and property projects that support Essex County Council’s commitments to good jobs, future growth and investment, green growth and levelling up the economy.

Fund snapshot

What does it invest in?

• Projects that the private sector wouldn’t deliver alone – or where ERF involvement could generate greater benefits for Essex residents and businesses
• Business accommodation and development land for housing – the Fund cannot invest in community or renewable energy infrastructure unless ancillary to these uses
• Projects that support Essex town centres and high streets, invest in our new Garden Communities, and nurture the five key growth sectors for Essex identified in the Essex Sector Development Strategy
• Projects within the administrative area of Essex County Council (this excludes Southend and Thurrock), with a focus on the Council’s priority places of Basildon and Colchester housing estates, Canvey Island, Harlow, rural Braintree, and Tendring

How does it invest?

• Direct risk and reward – the Fund does not provide development finance or grant funding to other parties
• Whilst the Fund will invest over £100m by 2042, peak debt is expected to remain under £27.5m at any one time

Performance

The Fund has different financial hurdle rates depending on the type of project and its level of contribution towards a Net Zero Carbon future.

Essex Renewal Fund projects will be added to the Council’s £1.3bn Capital Programme and sit alongside the activity of Essex Housing.

Key investment considerations

• To manage risk to the Council, investment by the Fund is limited to £12.5m per project.  For larger projects, the Fund can share risk and reward with external partners – either through a “Master Developer” model or development partnerships
• Other considerations include compliance with Public Works Loan Board (“PWLB”) borrowing guidance, and ensuring value for money for taxpayers

Fund managers

Ricky Thakrar has provided property and economic development advice to public and private sector clients since 2012, including helping to establish Homes England’s £1.1bn Land Assembly Fund.  He holds a degree in Property Planning and Development from Kingston University London.

Sarah Govier has worked in real estate since 2011, including in the Real Estate Transactions team at New York City Economic Development Corporation.  She holds a master’s degree in Real Estate Development from Columbia University, New York.

If you have a potential development site or partnership opportunity that you would like to discuss with the Essex Renewal Fund team, please email Sarah Govier at sarah.govier@essex.gov.uk.