Paddington Village Phase 1
What we were asked to do
The SIF (Single Investment Fund) is one of the key economic development funding mechanisms for the Liverpool City Region. Its main purpose is to address the City Region’s long-term strategic priorities and to accelerate economic growth. SQW was commissioned by Merseytravel on behalf of the Combined Authority to undertake full OBC and FBC appraisals of the SIF support for Phase 1 of the £1 billion Paddington Village innovation district development. The scheme, which covers 30 acres, is designed to complement the existing Liverpool Science Park and local NHS and higher education institution assets within Knowledge Quarter Liverpool. It includes a new proton beam therapy centre (The Rutherford Cancer Centre North West), an international teaching and learning facility operated by Kaplan International Pathways in partnership with the University of Liverpool, a northern HQ for the Royal College of Physicians, plus complementary office, laboratory, residential and hotel developments.
What we did
SQW led a multi-disciplinary team to appraise the scheme following the five case model as reflected in the SIF guidance. This included a detailed analysis of the costs of the enabling infrastructure to inform the appraisal of the economic, commercial and financial cases. A bespoke economic impact model was developed and used by SQW to assess the project’s value for money in terms of the net jobs and GVA created.
Findings
The appraisal identified that the project had a very strong strategic case and also offered a good financial return to the public purse. Following a detailed review of costings, the appraisal recommended a lower grant value than that applied for by the applicant.
Impact
Liverpool Combined Authority made a grant offer to Liverpool City Council to progress the enabling works, and these started in 2018. As of early 2021, the new international teaching facility is fully operational, the Spine building - which will house the RCP’s northern HQ - is expected to be occupied in April and construction is underway on a new Novotel hotel development.
