From Principles to Practice DIGITAL

APPROACH 2 Share risk In this model, a municipality develops a public invest - ment strategy to catalyse private investment to regen- erate a large-scale site or neighbourhood, particularly in underutilized or blighted areas. Government invest - ment derisks development or regeneration, enabling private capital to unlock market potential. For example, a municipality may decide to offer low-cost loans for upfront infrastructure investment by the private sector such as in roads, energy systems, train stations and public parks, or in social assets such as affordable housing and schools. They may also fund the creation of early cultural or social value projects such as public art and creative placemaking; pop up markets, work - spaces or spaces for small business; and public space investments that show that an area has value. The goal is to create the conditions for sustainable, inclusive and economically viable development by reducing perceived and actual risk by first movers and ultimately, to build a more desirable place for a diverse range of people and activities. This collective investment, marked by public funding, private capital and the provision of resources to support the delivery of social infrastructure and social value, reduces the overall risk of the project for private capital and helps to attract additional investment. If the first mover is a private investor selected to develop the area, they may be able to negotiate an additional pre- mium for taking the initial risk, such as a percentage of the increased land value. Early investment can be a key strategy to reduce project risk and improve long- term outcomes for government, business and other stakeholders; the role of government here is also to ensure that benefits are distributed more equitably – for instances in which lower income households and small businesses experience the benefits of the investment. 24FIGURE 4 Shared investment cycle Private capital resources Social value ROI value Thriving placePublic capital resources Regeneration£ £EARLY PUBLIC INVESTMENT UNLOCKING PRIVATE REGENERATION, BRENT CROSS The £8 billion regeneration of Brent Cross highlights the power of early public investment in reducing development risk and attracting private capital. Government-backed funding for key infrastructure – including Brent Cross West station, new roads and public spaces – has enhanced connectivity, making the area more desirable for inves- tors. Early investment in social infrastructure, such as affordable housing, schools and community facilities, has encouraged immediate and long-term inclusivity and vibrancy. This collaborative model has reduced barri- ers for private investors while ensuring benefits extend to local communities and small businesses. Guided by a comprehensive master plan, development of the 1.5 km2 site continues through a cross-sector partnership between Hammerson, Aberdeen Standard Investments, Related Argent and Barnet Council. Learn more on the Transforming Brent Cross website. 25 Related Argent Limited/John Sturrock