John Laing calls time on asset-backed vehicle model
Wed 16th January 2013, 3:17 pm
Developer John Laing is set to make 16 redundancies, blaming a lack of opportunities in the public private partnership opportunities in the UK and “lack of traction” in the LABV model.
The board announced that it will cease to bid for new LABV opportunities, and will withdraw from all LABV bids except a project in Stockport. In the UK, it will now primarily focus on transport, waste, health and renewable energy, and continue to pursue growth overseas.
In a statement John Laing said: “The company has had a good year in 2012 in terms of committing funds to new investment opportunities.
“However, the board is concerned that there will be a lack of scale in UK social infrastructure opportunities in the foreseeable future, and in particular the LABV model has not gained sufficient traction.
“As a result of these factors, the company will be ceasing to bid for new LABV opportunities and will be reducing its cost base through the potential redundancies referred to.”
The statement said that the company remains totally committed to deliver the Croydon LABV and similar projects in Hastings through all of their existing and future development phases.
The announcement comes two months after John Laing announced that it had dissolved its partnership with Tunbridge Wells Borough Council to regenerate four Kent towns – Royal Tunbridge Wells, Cranbrook, Paddock Wood and Southborough.
The partnership, created in December 2008, was planned to run for 10 years and regenerate council-owned land
Tue 1st October 2013, 11:36 am
The benefits of creating local asset backed vehicles are still strong, despite the failure of some early versions of the model, according to a new report produced on behalf of the Confederation of British Industry.
Fri 27th September 2013, 8:54 am
A council in the North West is considering using a local asset backed vehicle to sweat its land holdings.
Thu 23rd May 2013, 4:38 pm
Morgan Sindell Investments has signed contracts for £40 million of regeneration activity as part of its local asset backed vehicle owned jointly with Bournemouth Borough Council.