Development Securities and L&Q, today announce that they have entered into a partnership to deliver the residential quarter at 399 Edgware Road, a £150 million (€191 mln) mixed-use regeneration project in North West London. Under the terms of the partnership, L&Q will fund the construction and delivery costs for the development of 183 apartments and town houses, with Development Securities acting as development manager.
Sales profits generated through the joint venture will be split between Development Securities and L&Q, and the deal is anticipated to generate total profits of up to £12.0 million (€15 mln) to Development Securities over the next 3 years.
Development Securities will manage the construction, marketing and sales of the residential units which are anticipated to be completed in Q3 2017. Once the construction and sales of the residential units have completed, Development Securities will receive a performance fee and a profit share of approximately £8.0 million (€10 mln).
Michael Marx, Chief Executive, Development Securities PLC said: "Today's announcement demonstrates further excellent progress at 399 Edgware Road and a significant transaction for the Company.”
Jerome Geoghegan, Group Director of Development and Sales at L&Q, said: "We are delighted to be working in partnership with Development Securities to develop much needed, high quality homes at this landmark site. This agreement will help create a vibrant new quarter in North West London, bringing together an exciting mix of new retail, community and educational facilities with the additional homes that London so desperately requires."
Planning permission was secured in May 2013 for the redevelopment of 399 Edgware Road in North West London, to transform a 7-acre derelict site into a vibrant new mixed-use community. The development will deliver a large format Morrisons food store with a 368-space car park, a new 56,000 ft² (5.202 m²) oriental and far eastern retail and leisure quarter, a new residential community with a mix of 183 apartments and townhouses as well as a two-form entry primary school.
Source: Development Securities