Scarborough Group buys out JV partner

Leading UK regeneration and property investment specialist, Scarborough Group International (SGI) has agreed to buy out the entire interest held by Cromwell Property Group in Talbot Green Developments for an undisclosed sum.

The joint venture company was established in 2000 following an earlier agreement between SGI and the Welsh Ministers to bring forward the development of more than 200 acres of land in Llantrisant, South Wales.

The land holding is split across multiple sites, including a 27-acre plot for mixed-use in Talbot Green town centre and a further 27-acres in Mwyndy.

In 2007 SGI forged a partnership with a business which is now part of the Australian-listed Cromwell Property Group (Cromwell), transferring a 50% stake in the assets held within Talbot Green Developments.

The buy-out gives SGI greater control over the future direction of the land held in Llantrisant, and also provides the freedom to develop long-term strategic partnerships with other local authorities and government agencies as it seeks to expand its operations across South Wales.

Jack Abou-Jaoude, Senior Development Manager at SGI, commented:

“Our relationship with Cromwell has been a good one. However, we have wanted to broaden our base across South Wales for some time and have already identified a number of regeneration sites and joint venture opportunities that we would like to pursue.

“Having full control over Talbot Green Developments will allow us to accelerate our plans and strengthen our position as a key player in stimulating the regeneration of South Wales, while at the same time allowing Cromwell to focus on its funds and investment management business.”

SGI is now working closely with Rhondda Cynon Taf County Borough Council to revitalise plans for the town centre site so that it is less reliant on retail and more focused on broader hospitality, leisure and public services.

Abou-Jaoude added:

“The retail landscape has changed significantly since we secured planning permission for Talbot Green town centre, with the Covid-19 pandemic accelerating a number of consumer trends that were already starting to emerge, notably a greater shift towards online retailing.

“Because of this, we feel it prudent to reconsider our plans for Talbot Green town centre to ensure that the proposed masterplan comprises the right mix of uses that respond to the needs and wants of the local community. Stakeholder engagement is key in this regard and we look forward to sharing our plans with the local community as they come forward.”

SGI is one of the UK’s most active, privately-owned, regeneration and property investment specialists, with an award-winning portfolio of projects principally located across the Northern Powerhouse.

It currently has over 300,000 sq ft of commercial space under construction at Thorpe Park Leeds, Sheffield Digital Campus and Sheffield Olympic Legacy Park, alongside 189 new homes and 10,000 sq ft of commercial space at Middlewood Locks in Salford.