The municipality of Bournemouth has announced the creation of a Local Asset Backed Vehicle with UK construction group Morgan Sindall (MSIL) for the development of a mixed-use scheme in the UK city with an estimated value of between £350 mln (EUR 415 mln) and £500 mln.

The scheme, which will run for 20 years, is a 50/50 joint venture Public Private Partnership which will take control of a large site in the town centre for the development of leisure attractions, new housing, shops and offices. MSIL will provide funding for the on-going development of projects, matching the land value contribution of Bournemouth Borough Council. Surpluses generated by the partnership will be reinvested in improvements to the town's infrastructure and public spaces.

International law firm Pinsent Masons acted for Bournemouth Borough Council.

'We are shortly due to close further LABV projects to add to our portfolio. The developing trend in this area clearly evidences the use of these types of model as a viable delivery mechanism for public sector assets in the current market climate,' said Scot Morrison, partner at Pinsent Masons.