Pillar Property has sold its 50% interest in its Cricklewood regeneration joint venture with Hammerson to Multiplex for £18.6m.
The disposal is in line with Pillar’s strategy of selling its non-core assets in order to concentrate on City offices, out-of-town retail and selected European countries. However, Pillar has retained a carried interest in the future development of the site which could yield a further £12.5m.
Hammerson and Multiplex will now advance plans for the regeneration of 593 acres of derelict land in Cricklewood. The scheme could potentially include up to 5,500 homes and 4.3m sq ft of office space, and forms part of the wider regeneration proposals for the area.
The developers are expected to submit a planning application for the site in late 2005. Construction work on initial phases could begin in 2008.
Hammerson and Multiplex will jointly manage the project, with Hammerson concentrating on the commercial elements and Multiplex the residential space.
John Richards, Chief Executive of Hammerson, commented: “We look forward to working with Multiplex Group in advancing this exciting scheme. This is a key stage in delivering the regeneration of this important area of north London.”
Andrew Roberts, Chief Executive of Multiplex, added: “We are delighted to be working with Hammerson and the London Borough of Barnet in bringing forward this important major mixed-use regeneration project, which will greatly enhance the entire region. We see particular benefit to the area from the residential element of the project which will make a significant contribution to delivering much needed new investment in the area.”