HBD exits Pennine Property Partnership in £20m deal

Property developer HBD has sold its half-stake in Pennine Property Partnership and Acre Mill in a £20m deal.

Pennine Property Partnership (PPP) is a collaboration that began in 2011, with HBD appointed as development partner to Calderdale and Huddersfield NHS Foundation Trust; the first of its kind in the UK. It later won MIPIM Public Private Partnership of the Year.

The decade-long partnership saw the redevelopment of a listed mill building into a 56,000 sq. ft. outpatient clinic and the transformation of a former hospital site into 226 new family homes and a new supermarket.

As the partnership approached its natural end, the Trust wanted to retain its stake in the partnership as opposed to selling the main income producing asset. In order for the Trust to retain its interest, HBD devised an alternative structure for the sale, divesting its own share to a long-term fund – despite the additional complexity of the deal, the partnership remained a priority for HBD.

Vivienne Clements, Executive Director at HBD, said: “Pennine Property Partnership reflects HBD’s reputation for collaboration and our ability to not only take a long-term view on large-scale regeneration projects, but to take a partnership approach with our public sector partners. The high-quality new healthcare facilities will serve the community for many years to come.”

Tom Wheldon, Director and Head of Region at HBD, said: “The regeneration of the St Luke’s and Acre Mill is a great example of what can be achieved via public private partnership and a long-term approach to regeneration. We’re pleased to have been able to support the Trust in delivering the scheme, providing the local community with new healthcare facilities and delivering much-needed new homes.”

HBD is one of the country’s most active property developers, working from seven regional offices from Glasgow to London. It is working with a development pipeline of more than £1.2bn, focusing on industrial and logistics, residential and urban regeneration schemes.

Its Leeds office has grown quickly since its launch in 2020, with a team of 9 now delivering development projects across Yorkshire and the North East.