MIPIM UK NEWS: The government’s focus on large-scale infrastructure projects has missed opportunities in the regions, a panel heard today at MIPIM UK.
Speaking on a panel moderated by Estates Gazette’s David Hatcher, John Feeney, managing director and global head of commercial real estate at Lloyds Banking Group said that although Crossrail is having a positive impact on London, there is more scope for development in the regions that is not being met.
He aid: “A lot of government focus has been on grand projects. There is a role for smaller-scale infrastructure that can support housing development across the country.
“We need an approach that works on a local level to a greater extent. That has been a little lacking.”
The opportunity, he said, comes from a strong demand for high-quality office space in the regions that is met with a “dearth of supply”. Cities need to develop both the infrastructure they need to be accessible along with the office supply that matches demand.
Feeney said: “When we don’t get the development pipeline right, it has a real impact on the economy.”
Speaking about Legal & General’s developments in Leeds, Cardiff and Newcastle, Bill Hughes, head of real assets at the company, also emphasised the potential in the regions, calling London “congested”.
He said: “We are trying to invest in places that are less congested with capital. London represents a tremendous investment opportunity, but that tends to be where international capital will go.
“If you are a UK investor, I would say, proportionally speaking, those regional cities are less congested, they are underdeveloped and there is potential for UK cities to do a lot more.”
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