Public Sector Property

16.01.15

Birmingham City Council to sell the NEC

Birmingham City Council has agreed to sell NEC Group, including the NEC Exhibition Halls, the Genting Arena, the International Convention Centre (ICC) and the Barclaycard Arena, to LDC for £307m.

LDC – the private equity arm of Lloyds Banking Group – was selected after an extensive sale process, the council announced.

The transaction values the NEC Group at around £307m, £15m of which will be in the form of a loan note, including the value of the leases of the Hilton Metropole and Crowne Plaza hotels on the NEC site. These are being retained by the council.

The sale includes all NEC Group businesses, with the council providing a 125 year leasehold interest in the NEC site (including the NEC Exhibition halls, The Genting Arena – formerly the LG Arena – and the Resorts World development), and 25 year leasehold interests in the International Convention Centre  and Barclaycard Arena (formerly the National Indoor Arena). 

The deal will see the council retain freehold of all the NEC sites and also allows the council to “claw back” certain non-core land at the NEC site for future development. 

Sir Albert Bore, leader of Birmingham City Council, said: “The announcement of a new owner is a landmark moment in the history and development of the NEC Group and its three operating sites: NEC, ICC and Barclaycard Arena.

“We are very pleased to have attracted a Birmingham-based buyer in LDC that understands the local importance of the NEC and shares our vision for the future. This will ensure that the business goes from strength to strength, and that the NEC continues to play a leading role in the wider economic development of the region whilst securing Birmingham and the wider West Midlands’ position as the home for outstanding live events.  We are looking forward to working alongside LDC to achieve this goal.”

Martin Draper, LDC’s chief executive officer, said: “The NEC Group is one of the UK’s best known and iconic businesses, particularly so in the Midlands, where it is at the heart of the region’s commercial and leisure activities.

“The NEC Group has developed significantly over recent years and we are delighted to be working with such a strong and experienced team to deliver the NEC’s next exciting phase of development. We also look forward to working closely with both Birmingham and Solihull Councils to support their plans at both the NEC and City Centre sites which include the airport expansion, redevelopment of the Paradise Circus area and in connection with the HS2 project.”

The transaction is expected to complete in the second quarter of 2015.

(Image credit: Snowmanradio)

Tell us what you think – have your say below or email opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

latest public sector news

Cabinet member resigns over Birmingham council’s ‘declaration of war’ against staff unions in long-running bins dispute

18/01/2019Cabinet member resigns over Birmingham council’s ‘declaration of war’ against staff unions in long-running bins dispute

Birmingham City Council is seeking a court injunction against refuse workers striking against fortnightly rubbish collections, sparking the cabin... more >
Liverpool City Region mayor proposes ‘metro mayor tax’ to deliver priorities, one year after ruling it out

18/01/2019Liverpool City Region mayor proposes ‘metro mayor tax’ to deliver priorities, one year after ruling it out

Liverpool City Region (LCR) mayor Steve Rotheram has proposed a new ‘metro mayor tax’ a year after ruling out such a move as he unvei... more >
Deal struck in historic 12-year equal pay dispute with Glasgow City Council

18/01/2019Deal struck in historic 12-year equal pay dispute with Glasgow City Council

An agreement has been reached over the long-running and bitter dispute over equal pay at Glasgow City Council, which will see thousands of female... more >

comment

Government accountability: A year in crises

15/01/2019Government accountability: A year in crises

From Windrush to Univerisal Credit: the Institute for Government’s (IfG’s) accountability lead Benoit Guerin discusses how we can ave... more >
Rethinking public-private partnerships

15/01/2019Rethinking public-private partnerships

Trinley Walker, senior policy researcher at the New Local Government Network (NLGN) considers some different ways of approaching the relationship... more >
Fracking: divest to invest

07/01/2019Fracking: divest to invest

Deirdre Duff, divestment campaigner at Friends of the Earth, takes a look at local authorities’ role in fracking. The fossil fuel indu... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

interviews

Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >

public sector focus

View all News
Cabinet member resigns over Birmingham council’s ‘declaration of war’ against staff unions in long-running bins dispute

18/01/2019Cabinet member resigns over Birmingham council’s ‘declaration of war’ against staff unions in long-running bins dispute

Birmingham City Council is seeking a court injunction against refuse workers striking against fortnightly rubbish collections, sparking the cabinet member for clean streets, waste and recycling t... more >
Liverpool City Region mayor proposes ‘metro mayor tax’ to deliver priorities, one year after ruling it out

18/01/2019Liverpool City Region mayor proposes ‘metro mayor tax’ to deliver priorities, one year after ruling it out

Liverpool City Region (LCR) mayor Steve Rotheram has proposed a new ‘metro mayor tax’ a year after ruling out such a move as he unveils his key priorities for the combined authority&r... more >

the raven's daily blog

Blog: 5 minutes with Dr Tracy Vell MBE, Associate Lead for Primary and Community Care, Greater Manchester, Health and Social Care Partnership.

17/01/2019Blog: 5 minutes with Dr Tracy Vell MBE, Associate Lead for Primary and Community Care, Greater Manchester, Health and Social Care Partnership.

Ahead of next month’s EvoNorth event we caught up with Dr Tracy Vell MBE, Associate Lead for Primary and Community Care, Greater Manchester, Health and Social Care Partnership. Dr Tracy Vell MBE shares her thoughts on the Northern Powerhouse, what it means to her and why she thinks it’s important to attend EvoNorth.  W... more >
read more blog posts from 'the raven' >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the o... more > more last word articles >