Who profits from Forest City?

Three groups profit from Forest City, openly: the private investors who fund it, the residents who live in it, and the country that gains a new engine of growth—all without taxpayer subsidy.

The company behind the project, ACDC, spends around £280 million of private money on masterplanning and land options, with zero government capital at risk. In return it receives 160 acres of commercial land in the new city's business district. If the city fails, investors lose their money; if it succeeds, they share in the value they helped create. This is the Canary Wharf model, and it worked.

We did initially try to structure the project as a non-profit—we're motivated primarily by fixing the social contract—but it quickly became clear there wasn't enough money available to fund a project of this type in the non-profit space. To keep us and our investors aligned to the goal, our returns are tied to commercial land, not to houses: we'd lose money if we just built homes and no infrastructure, because no companies would want to move in.

Residents get homes they can afford, permanently protected from speculation by the Community Land Trust.