In the design, planning, delivery and sales stages of a joint venture regeneration, it is truly a collaborative effort. Parties bring their own expertise, skills, contacts and supply chains to the table, to help deliver a successful project.
But what happens "when the circus leaves town", and the developer exits? The landowner remains, responsible to all tenants, with an obligation to maintain the development and provide estate services. Landowners will do well to think about what is needed longer term, when signing up to arrangements with their developer partner.
Understanding the management, maintenance and sales processes required
Firstly, landowners will want to know what exactly is being built. The focus should be on ensuring the designs and specifications work not only in terms of the affordable homes being delivered, but the wider development as whole. What are the likely costs of management and maintenance? Are maintenance and services teams and contractors happy with what is being proposed? Variations to the works will need approval if they will have an impact on management and maintenance.
Whilst the developer partner is likely to manage the sales process for private market homes, the landowner will need visibility and approval rights over the leases being granted. Items such as the scope and frequency of estate services, how service charges are calculated, and enforcement, are important if you are responsible for managing these in the long term.
Changes to the supply chain and associated documentation
More often than not, the developer will be engaging its own supply chain to deliver the development. Thought needs to be given to any changes to their usual agreed form documents, with collateral warranties (or other reliance) needing to be made available to the landowner as well as the developer. This reliance is needed across the wider development and not just the affordable homes. There could be issues with works in common areas, building structures, parking and commercial areas, which could one day be for the landowner to resolve.
Getting the Handover right
Finally, certification of practical completion and handover needs to be considered. What documents, operational information, designs and drawings, will the landowner need for the common areas and infrastructure? This is of particular importance in light of the new 'golden thread' building information requirements introduced by the Building Safety Act. The list of this information may look different to what housing associations are used to seeing when purchasing homes.
The landowners arguably have a greater interest in these issues than their developer partners. It is a different set of issues to consider than many may be used to. Conversations about them at an early stage in negotiations can prevent unwanted delays later in the process.
