Development Securities announces that its wholly owned subsidiary, Cathedral Group (Cathedral) has signed a joint venture agreement with Weston Homes to undertake a residential-led regeneration development at the Telegraph Works site on the Greenwich Peninsula in London.
Under the terms of the transaction, Weston Homes will pay an initial £19.1 mln for the majority of the land on which it will construct 256 apartments and 16 townhouses.
This initial disposal realizes profits of circa £9.0 mln to Development Securities with further profits to be generated upon disposal of the completed townhouses.
Telegraph Works forms part of a larger site that is currently owned and operated by Alcatel-Lucent, the global telecommunications company who run a factory and various operational facilities across the site. The project was one of the assets acquired as part of the acquisition of Cathedral in May 2014. Planning consent was secured in October 2014 to include the delivery of 256 apartments and 16 townhouses as well as the refurbishment of the adjacent Alcatel-Lucent facilities.
Martin Wood, Cathedral's Managing Director said: "This sale and joint venture with Weston Homes will allow us to build on Cathedral's reputation for delivering excellent residential-led schemes in the Royal Borough of Greenwich. Our merger with Development Securities in May has enabled the strengthening of the Group's position as a significant residential developer with a portfolio that has over 600 units under construction."
Matthew Weiner, Director, Development Securities PLC said: "Today's announcement follows on from the recent positive news in respect of our residential joint venture and funding agreement with L&Q at 399 Edgware Road, London NW9. Both announcements underline our increasing involvement in the delivery of residential development in emerging locations in suburban London."
Source: Development Securities