3rd September 2001

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Can investors have confidence in urban regeneration areas? That is the question being addressed by a major new UK research project, spearheaded by the University of Ulster.

The project seeks to establish an urban regeneration index, to enable investors to benchmark the financial returns that they can achieve from investing in urban regeneration areas.

Conducted by a team from Ulster, Aberdeen and Glasgow universities – partners in the Property Economics and Finance Research Network – the £120,000, 18-month project will help overcome the difficulties in attracting private finance into inner-city and urban renewal areas.

Providing a benchmark of returns on such investments will help attract private finance into urban regeneration at a time when there is a major rethink about the role of incentives to encourage urban regeneration. The research places urban regeneration property returns on a basis which permits rigorous evaluation of financial performance and comparisons with other investment opportunities.

Professor Alastair Adair of the University of Ulster highlights that “the lack of transparency in urban regeneration property can account for differing perceptions between investors putting their money in to urban regeneration and those not investing. While there is a well-developed information network on the prime commercial property market, relatively little is known regarding returns from property in urban regeneration areas.”

Sally Keeble, Parliamentary Under-Secretary of State for Housing, Planning and Regeneration at DTLR, said “Bringing new life to our towns and cities is a priority for this Government. As our Urban White paper made clear, in order to achieve this, private investment must be attracted to these areas. I hope this study will play a significant role in helping to encourage that investment by increasing the confidence of the private sector”.

“The revitalisation of the run-down areas of our cites is now one of the key challenges facing the profession and society as a whole. If this research can give investors more confidence to get involved in these areas, then it will have achieved a great deal”, commented Stephen Brown, director of research for the RICS Foundation.

For further information, please contact:

Press Office Department of Communication and Development
Telephone: 028 9036 6178
Email: pressoffice@ulster.ac.uk