The Government is introducing greater flexibility in land use so as to accommodate the diversifying space requirements of the innovation economy. It is introducing the Master Developer approach to develop districts based on land use and gross plot ratio.
MASTER DEVELOPER APPROACH & EXAMPLES
1. With the flexibility to put forward proposals in the form of a master plan and urban design plan within a broad set of planning parameters, the Master Developer will master plan the area to achieve the vision and development outcomes of the precinct or district.
2. The master developer model works because it combines private funding and development expertise with councils’ detailed knowledge of what communities want and need, both now and in the future.
3. It allows partners to build strong ties with existing communities so that they benefit from associated infrastructure and amenity improvements.
4. Ultimately, this approach aligns with the principles of Letwin and Homes England’s strategy, but recognises that meeting their ambitions doesn’t have to rely on local authorities taking sole responsibility for delivery.
5. The development of the King’s Cross Railway Lands was done by the Master Developer approach. The King’s Cross Railway Lands covers 27 ha and had been in the ownership of a number of transport-connected landowners.
6. The landowners, which formed the King’s Cross Partnership, appointed Argent as the Master Developer to develop the site. The centrepiece of the development was the development of a new facility for Central St Martin’s, which combines two of London’s most prestigious art schools.
7. The establishment of the college played a critical role in attracting TMT occupiers to the development.
IMPLICATIONS OF MASTER DEVELOPER APPROACH
1. The Master Developer will have greater flexibility to integrate different uses and will have more opportunities to come up with innovative solutions and designs to achieve better integration between buildings and public spaces, connectivity and amenities.
2. But we shouldn’t expect either the private sector to necessarily have these skills. Private sector led consortium’s are rarely master developers. The normal route is land promotion by land promoters and then sale to property developers. Something as simple a new road to access a large site and the whole chain breaks.
3. In terms of the appropriate role of the public and private sector a distinction needs to be made between the different phases of delivery and planning and the extent to which a coordinated approach exists between existing landowners.
4. In those cases where landowners have not come up with a framework to fund the masterplanning and division of costs and benefits from enabling infrastructure and final plots sales the public sector will need to take a lead in masterplanning and site subdivision. In many cases local authorities will need support from private sector design and engineering companies.
5. When it comes to infrastructure delivery, site preparation and land sales local development corporations are widely recognised as a good model and it is likely that they will mostly recruit from the private sector.
6. There seems little case from this to be led by the private sector as the development corporations can operate framework agreements with the large engineering and property firms as they see fit.
7. With economies of scale many landowners and/or housebuillders who purchase large subdivided plots may see benefit on coordinating infrastructure and constriction contracts formally or informally setting up ‘master developer’ arrangements.
8. Overall the situation will be complex with only a small number of major property companies having strategic landownings, scale and funding to enable them to operate as master developer on large strategic sites.
STRUCTURE OF MASTER DEVELOPER AND SPC
1. The partnership is envisaged to harness the complementary expertise of all parties.
2. Mitbana will leverage Mitsubishi Corporation’s global experience in real estate developments including integrated developments and technology implementation in diversified industry as well as SJ’s technical capabilities in master planning, urban, residential and industrial development.
3. As one of Indonesia’s largest and most established conglomerates, SML will offer its strong local knowledge and track record in growing BSD City.
4. On the other note, MC has also signed a MOU with SML back in March 2020 in order to have a broader discussion for the strategic partnership with regards to town management and the implementation of the smart and digital solutions for overall BSD area of circa 6,000ha.
5. This partnership between MC and SML aims to increase the value of BSD city by the implementation of the smart and digital solutions, such as AI/IoT platform, City portal, mobility and energy technologies etc. through the various business groups of MC.
Source: www. ntl.my/,www.mitsubishicorp.com,andrewlainton.wordpress.com
