The Covent Garden Market Authority has selected VSM Estates, the Joint Venture between VINCI PLC and St. Modwen (LSE: SMP), the UK's leading regeneration specialist, as its chosen Development Partner for the redevelopment of the New Covent Garden Market in Nine Elms.
The multi-phased project has a gross development value of around £2 billion (approx. 2.4 billion) and involves a complete rationalization of the 57 acre site over a five-year period.
The New Covent Garden Market regeneration comprises the development of a new, 500,000 ft² (approx. 46,450 m²) modern facility to house the current ca. 200 businesses that make up the UK's largest fruit, vegetable and flower market. This will be funded by the release and redevelopment of 20 acres of surplus land into a residential led mixed-use regeneration scheme.
The contract is subject to the grant of a full planning consent for VSM Estates' scheme with construction expected to commence by mid-2013. Construction will initially focus on the building of the new market ahead of a multi-phased move of the traders into the new purpose-built facility between mid-2014 and 2018.
Commenting on the appointment, Bill Oliver, Chief Executive of St. Modwen, said: "We are very pleased to have won the contract to develop the New Covent Garden Market site. We believe our success is down to our extensive experience in delivering highly complex regeneration schemes such as this, in partnership with a global leading construction and concessions business in Vinci."
Commenting on the contract win, John Stanion, Chairman and Chief Executive, VINCI PLC, said: "As part of a leading global construction and concessions company we are delighted to be working with the Covent Garden Market Authority to deliver this particularly complex project.
"Our focus on developing a solution that enables the market to continue to trade efficiently throughout the construction program has been critical in our success. This important contract builds upon our strong existing partnership with St. Modwen."
Source: FTI Consulting
