Nikal purchased 13 acres of residential development land in Lymm, Cheshire in 2003 under its 'surrogate investment program’. The program offers large residential developers, including PLC's, the opportunity of returning higher IRR's by taking the land asset off balance sheet.
In this case Countryside Properties were obligated to draw the land down from Nikal in line with an agreed development timetable, whilst Nikal carried the residual ownership of the land. In affect the residential developer pays for the land as and when it is drawn down, instead of paying for the whole site day one.
Countryside built over 200 homes on the site and is a successful example of private companies working in collaboration.