Development Securities announces achievement of milestones at its £110 million mixed-use scheme (UK)
Tuesday 3 July 2012
Development Securities PLC, in partnership with Cathedral Group plc, announces that it has completed the acquisition of the 2.2-acre site in Greenwich town center for £16 million (approx. €20 million), enabling the development of The MVMT, a 350,000 ft² (approx. 32,515 m²) mixed-use regeneration scheme, to commence.
Following on from its earlier announcement that it had exchanged contracts for the £50 million (approx. €32 million) GDV residential element of the scheme with Willmott Dixon, Development Securities confirms that this disposal has now completed.
In addition, contracts for sale have been exchanged with McLaren at £8.3 million (approx. €10.3 million) for the land element of a 358-bed ‘student village’ with the deal due to complete in August.
Development Securities entered into a joint venture with Cathedral Group in September 2010 and secured planning consent in 2011 to regenerate and thus reposition this derelict industrial site into a high quality mixed-use development.
The partnership will commence enabling and infrastructure works immediately to prepare the site for development.
The hotel element has been pre-leased to Travelodge and negotiations are in hand regarding its long-term institutional funding.
The final and smallest stage of the regeneration scheme comprises circa 25,000 ft² (approx. 2,323 m²) of mixed-use leisure and retail space.
Michael Marx, Chief Executive, Development Securities: “This is a good example of the successful implementation of our strategy to create value by repositioning secondary or tertiary real estate into prime or near-prime development via the process of regeneration.”