West Midlands mayor launches £11bn development corporation and £3.8bn regeneration ‘war chest’

Mr Parker launched the MDC to investors and developers at the UKREiiF real estate conference in Leeds on Tuesday, following a green light from the government.

The mayor said: “It will be a magnet for investment, de-risking major projects while providing the stability and continuity needed for investor confidence. It will also cut through red tape, so we waste no time getting spades in the ground on these hugely significant regeneration schemes.

“This is a once-in-a-lifetime opportunity to end the deep-rooted deprivation that has blighted lives for too long in East Birmingham and create places people and businesses are proud to call home.

“The scale of this corporation shows that Birmingham is back and ready to lead the UK’s return to growth.”

Housing secretary Steve Reed said: “A new regeneration body will give the West Midlands mayor the powers to unlock thousands of homes, jobs and vital infrastructure – boosting homeownership, putting more money in people’s pockets and creating opportunities for the next generation.”

Also at the conference, Mr Parker launched a £3.8bn ‘war chest’ investment fund aimed at speeding up regeneration, delivering more affordable homes and creating jobs across the region.

The new West Midlands Futures Fund brings together money and backing from the West Midlands Combined Authority, the West Midlands Pension Fund, Homes England, the National Wealth Fund and other national investment bodies.

The fund has been created through a new West Midlands Investment Partnership, which has been set up by the mayor to bring public investors and government agencies together behind a shared plan for growth.

The mayor is seeding the partnership with £800m from the West Midlands Combined Authority, alongside a commitment of £1.1bn from the West Midlands Pension Fund and developing a pipeline to invest £1.7bn from Homes England. 

The funding will help deliver major projects across the Birmingham-North Solihull Gateway, Coventry Growth Arc, Sandwell-Dudley Metro Corridor and Wolverhampton-Walsall Growth Cluster, all of which represent a £19bn pipeline of investment opportunities, as set out in the West Midlands Investment Prospectus.

Mr Parker added: “This gives us the financial firepower to invest in the things that matter most to local people – affordable homes, good jobs, skills and better transport.

“The West Midlands has never had this level of investment working together behind a single regional plan. We now have the chance to shape our own economic future and bring in billions more of private investment alongside it.

“I want developers and investors to work with us to help grow the economy and raise living standards right across the region.”

Oliver Holbourn, chief executive of the National Wealth Fund, said: “Boosting regional investment is key to national growth.

“Through our strategic partnership with the mayor of the West Midlands, we’re backing the ambition behind the West Midlands Investment Partnership, helping to develop the pipeline of investable projects that can unlock jobs and private investment for communities across the region.”