Development Securities signed a £12.1 million (approx. €14.2 million) agreement with Aviva Investors and British Land to terminate its development management contract at PaddingtonCentral.
Further to the announcement regarding British Land's acquisition of Aviva Investors' interests at PaddingtonCentral, Development Securities today announces that it has signed an agreement with both parties to terminate its role as development manager on the scheme, releasing a compensation payment of £7.1 million (approx. €8.32 million). This payment together with the return of Development Securities' £5.0 million (approx. €5.9 million) of working capital will equal a total payment of £12.1 million (approx. €14.2 million) to the Company this month.
Development Securities, in conjunction with Aviva Investors as funding partner, commenced work at PaddingtonCentral in 1998 to bring forward the comprehensive regeneration of an 11-acre derelict goods yard adjacent to Paddington station. In total Development Securities has developed 1.2 million ft² (approx. 111,500 m²) comprising over 850,000 ft² (approx. 79,000 m²) of prime office space, 100,000 ft² (approx. 9,300 m²). of retail and leisure space, 200 residential apartments, a 206-bed Novotel hotel as well as extensive public realm. PaddingtonCentral is now firmly established within the West End market as a sought-after business destination, attracting a number of blue chip tenants including Visa, Kingfisher, Astra Zeneca and Vodafone.
Michael Marx, Chief Executive, Development Securities PLC: "In recent years, we have established a strong pipeline of developments to realize gains across our development and trading portfolio over the coming years. In addition, we have made further good progress this year to release cash from our legacy assets over the near term. Whilst we would have liked to have developed the final two buildings at PaddingtonCentral, the cash returned, including a not insignificant compensation payment to Development Securities, will further strengthen our balance sheet."
Source: Development Securities