Accessing private sector finance in urban regeneration: investor and non-investor perspectives

Abstract

This paper is concerned with the role of private sector finance in urban regeneration. The theme is initially explored from a literature perspective examining recent initiatives and current policy directions. The central core of the analysis investigates investment behaviour and draws upon results of two independent survey cohorts namely private sector actors who invest in urban regeneration and those not investing. Motives for holding property investment portfolios and decision-making criteria are analysed and factors facilitating the flow of private sector finance are assessed. It is shown that market factors are the primary influences on decision making with regeneration initiatives of a secondary nature. Although both cohorts identify similar factors as being important in the decision-making process, the perception of the risk/return profile associated with urban regeneration differs significantly. Institutional investors are shown to have much higher entry criteria, with quality of neighbouring environment a major factor deterring investment. In improving the flow of private sector finance into urban regeneration, non-finance based instruments emerge as key considerations.