Land Securities and Henderson agree £80m TIF with Glasgow Council

Published 26th Jan 2010

Land Securities and Henderson have agreed in principle an £80m Tax Increment Financing deal with Glasgow City Council for the extension of the Buchan Galleries shopping centre.

The deal would see the centre expanded by 700,000 sq ft and work could start in 2012. The £80m would effectively be a loan that will then be paid back by the developer in the form of increased business rates. Outline planning consent was granted in October 2008 but no plans were made to start development due a lack of funding.

The existing 600,000 sq ft centre is owned by the Buchanan Partnership – a 50:50 joint venture between Land Securities and Henderson.

The deal has been brokered by the Scottish Futures Trust, the government owned company set up in 2008 to improve public infrastructure investment, in one of its first major acts to assist the Scottish property industry.

A detailed report on the full implications of the proposed TIF will be brought back to Glasgow City Council’s Executive Committee for approval in early 2010 and will then require the approval of the Scottish government.

The extension would require building on or over the existing bus station and discussions are being held with the leaseholders of the sites, the Strathclyde Partnership for Transport.

The deal is the third such agreement currently being discussed in Scotland, although no TIF agreements have been put in place in England. Edinburgh City Council is in discussions with Forth Ports to help its Leith Waterfront development and North Lanarkshire Council is in discussions with Capella which is undertaking the development of Ravenscraig.

Source: ' PropertyWeek '

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