Yeah I get it to try and spread risk across different sectors but the risk really sits against what the values that the developer can achieve against the construction cost, the only way I could see that working is if there were pre-let’s on the office and hotel, and achieved high enough rents with companies that have a good covenant strength, they may then be able to take a view on the residential element - but the likes of echo 24 building values would spook most developers hopefully Vaux, sheepfolds, Farringdon row projects will improve that market confidence and increase values in time.
The problem with the Sunderland market is that office and residential development particularly with high rise where there is added construction is it just won’t be viable due to the low rental and purchase values caused by lack of demand and market comparators would be set against high construction costs - hopefully over time this will improve but I can’t see it happening for the foreseeable future unless significant government grant can be found though that brings its own issues around subsidy control and state aid rules.