PART THREE Financial returns to the public sector

Part 3 of this report looks at the financial returns to the public sector. It compares those expected in 2007 against those predicted at the outset of the deal in 2004. This section explores each element of English Partnerships returns both from land development and additional profit streams. The relationship between risk and returns is also considered.

3.1  The deal to regenerate the Greenwich Peninsula is a complex land transfer and property development deal under which the public sector will earn a return from the development of land and a share of the value that this creates. The source of financial returns is set out in Figure 11 overleaf.  EP will receive a guaranteed minimum return, a share of the profits created by MDL's property development and there is potential for super-profits from AEG's operation of The O2 Arena and Waterfront.