Annuity Lease Back Model housing PPP project in Newcastle

project in tender

The project involves the financing, design, construction and fit out of 197 housing units located across eight sites in Newcastle, north-east England. The units will be a mix of bungalows and Tyneside flats for older persons and people with physical care and support needs, residential apartments for people with learning disabilities and/or autism, and a sheltered apartment scheme for older persons. Under an Annuity Lease Back Model (ALBM), the homes delivered will be leased back to Newcastle City Council for a set period of time. At the end of this period, all property and assets will revert back to council ownership. By leasing the properties back to the council the private partner will secure a long term fixed return for the investment.  The lease period is for 65 years, however, there is a break clause in the overriding lease at 40 years.

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