Structuring mixed use schemes

Why mixed use development?

Mixed use developments have become increasingly popular over the years. The drivers for this include the shortage of greenfield development sites and planning policy aimed at regenerating urban areas, 'placemaking' and an ethos that people should live where they work. The increase in residential property prices coupled with lower office occupancy and return has led to conversions of office to residential and office or retail use.

By 'mixed use' we mean any development which comprises a mix of commercial, office, retail, hotel or leisure with residential use. While this creates opportunities for developers, investors and property managers, mixed use schemes pose significant legal and management issues for developers and careful planning and implementation is essential.

The performance of residential property as an investment class has attracted the attention of large institutional landlords such as pension and insurance funds leading to a growing number of private rented sector investments (PRSI). Homes England provides funding support for new residential-led development, see Practice Note: Build to Rent schemes—key features and Funding support for new residential-led development, as a result, there is incentive to include a residential

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