LABVs drive Morgan Sindall growth

Contractor Morgan Sindall has announced significant growth in its pipeline during 2011, in part thanks to the increasing interest in local asset-backed vehicles (LABVs).

The group’s investments division, together with its urban regeneration vehicle Muse, are expected to play a large role in the company’s growth going forward, due to the interest from local authorities in developing LABVs.

“The Autumn Statement also reinforced our belief that, in the current economic environment, owners of assets will need to look at alternative ways to deliver services and we expect that new privately funded investment models will emerge,” the group said in its trading update.

“Our Investments division is ideally placed to develop such innovative approaches, for example, the LABV model currently being used at Bournemouth to develop a number of sites in joint venture with the borough council.”

Earlier this month, Muse Developments was named preferred bidder for Stockport’s £145m town centre regeneration project.

That scheme will see Stockport Borough Council providing the land, while Muse will work in conjunction with the council and other interested parties including Network Rail to redevelop the site.

For more information on that project, click here.