St James, part of the Berkeley Group, has acquired a-10 acre site in White City, London, from Marks & Spencer (M&S) for a sum in the region of £100 million (to be paid over three years). The 10 acre site is currently an M&S storage warehouse. It will now be transformed as part of a major regeneration project, featuring extensive parklands, with the potential for 1,300 new homes.
The site forms the heart of a much larger regeneration program led by major institutions including Westfield, Stanhope and Imperial College London. M&S has agreed a three year leaseback on the property, allowing it time to relocate to more modern premises.
Tony Pidgley, Chairman of the Berkeley Group, comments: "St James will use all its expertise in place-making to create a fantastic new location, with a public park, improved connections and homes for thousands of people. I am delighted to secure this important strategic site for West London."
Sir Keith O'Nions, President and Rector of Imperial College London, said: "With St James' acquisition, the major landowners in the White City Opportunity Area now have an exceptional opportunity to move forward with the comprehensive regeneration of this strategic site. Our new campus there, Imperial West, will anchor world-class research and innovation in the area, creating brand new facilities for the public, and generating major job opportunities. We are delighted that St James and neighboring investors will also make significant contributions to improving the local economy and community. We look forward to working with St James, Hammersmith and Fulham and the GLA to help realize the area's outstanding potential."
Peter Burns, Executive Director of CBRE's central London Development team, says: "This deal allows M&S time to undertake a relocation, whilst releasing a significant piece of the jigsaw of one of London's most exciting regeneration areas. The development sits within a larger regeneration zone, and the residential element will attract considerable interest due to its central London location and phenomenal educational, retail and leisure attractions."
Sir Edward Lister, Deputy Mayor for Planning, added: "This is an extremely positive step forward in the regeneration of White City which is set to deliver thousands of new homes. We have ambitious plans for this area's wider development, seeking to build on its heritage, attract further investment and create jobs. I welcome St James Group's contribution to this exciting vision."
CBRE acted for the vendor, M&S.
Source: The Berkeley Group