The London Borough of Newham has formally started its search for a partner for a £600m vehicle to regenerate the area as an Olympic host destination and beyond.

The council placed an advert in the Official Journal of the European Union yesterday for a partner on the project, which was first revealed in Property Week (27.06.08).

The Newham Development Vehicle, a strategic regeneration property development vehicle, has shrunk slightly in size for an initial phase from £800m. There are now nine sites in the vehicle, rather than the original 11.

The project will also include rationalising some of the council’s accommodation.

The tender said the partner: ‘Will be required to share in the vision and ambitions of the council and demonstrate its long term commitment to delivering the sustainable economic and physical regeneration of the borough.’

Experts believe the asset backed regeneration vehicle represents the future for local authorities and public bodies looking to secure private sector funding.

It is thought that the London Development Agency is also looking at the option of setting up a vehicle of this type for the Olympic site after the 2012 Games.

King Sturge is advising the council.