Transport for London (TfL) and Capital & Counties Properties PLC ('Capco') are set to agree terms for a joint venture to bring forward the first phases of the Earls Court Masterplan, following approval to proceed by TfL's Board on Wednesday 5th February 2014.
TfL owns the freehold to the exhibition centers known as Earls Court 1 & 2, and Capco is the current leaseholder of both sites. The agreement will enable the two organizations to establish a joint entity which will own new 999 year leases over the sites, as well as other land owned by Capco adjacent to the exhibition centers. The joint venture agreement is expected to be finalized and signed shortly and ownership of the new entity will be split 63% to Capco and 37% to TfL.
The joint venture will employ Capco as development manager to enable a comprehensive approach to be taken for the implementation of Sir Terry Farrell’s Masterplan for the wider Earls Court and West Kensington Opportunity Area.
The Earls Court Masterplan represents a unique opportunity to regenerate a substantial part of central London, creating 7,500 homes, 12,000 jobs and new health, cultural and community facilities as well as 23 acres of green space including the five acre Lost River Park. It received planning consent from the London Borough of Hammersmith & Fulham ("LBHF") and the Royal Borough of Kensington & Chelsea ("RBKC") in November 2013.
Graeme Craig, Director of Commercial Development at TfL, said: "We are delighted to reach the final stages of the deal for the development of Earls Court 1 and 2 with
Capco. The realization of the Masterplan will see the creation of much needed jobs and homes for London. The revenue generated from the development of Earls Court 1 and 2 will be reinvested back into the transport network to improve services for our customers.
"This joint venture reflects our new approach of retaining and investing in our assets, working with leading developers to deliver real long-term value for fare and taxpayers."
Gary Yardley, Investment Director of Capco, said: "We are delighted that Transport for London's Board has approved entering into a joint venture to develop the Earls Court land. Following the land agreement we reached with Hammersmith & Fulham Council last year and the outline planning consent we have in place, the reimagination of Earls Court is now moving forward.
"Working with TfL and Hammersmith and Fulham Council, I believe we can create a remarkable new part of London where Kensington, Chelsea and Fulham meet; delivering thousands of new homes and thousands of new jobs that will benefit London and the local area alike."
Source: Capital & Counties