Issues of building new office and work space - are public-private partnerships (PPPs) still a viable solution?
In the same way that the housing market is constantly increasing in size, the need for work-based property is also on the rise.
As companies look to expand they require bigger offices in which to base themselves, and will often look for the best rates in prime locations. However, it is important to match your budget with a suitable location, as dealing with any issues such as rent arrears can become particularly complex.
Transport and business hubs are ideal locations for many businesses, as everything they need for their expansion is within a set perimeter.
Public-private partnerships can be any collaboration between a public body and a private company, in this case most likely to be regional councils and construction companies.
It is designed to attract investors to engage in infrastructure projects which can have short or long-term benefits.
The overriding factor though will be the benefit it brings to the people in the area. The construction company will take on the design aspects, as well as the substantial financial, technical and operational risks of the project.
For the best part of two-decades, PPPs have been used as a workable solution but recent financial pressures have resulted in less and less of them being taken on.
However, they still provide ample opportunity for rapid development, should a company be willing to take a project.
Where office buildings are concerned these types of plan enable businesses to enter an area which can lead to job creation and greater access to information.
An issue that can arise from this type of plan can be that the buildings become out-dated during the length of time they are being rented, leaving unsellable property when the PPP terms end.
However, it is likely that the building will have assisted in the development of the businesses inhabiting it, meaning the financial benefits of doing so outweigh the later costs.
At a time when many councils are stretching their budgets as much as is physically possible, PPPs offer an alternative solution in order to maintain growth and infrastructure development.
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Property can be particularly complicated areas when involved within a wider insolvency case. Moorfields have a specialist property team who can support stakeholders when handling complex issues which are related to property insolvency.