International real estate advisor Savills, working alongside the investment bank Lazard, has launched the sale of a 36.5% stake in the iconic King’s Cross redevelopment in London on behalf of the UK Government. The investment opportunity represents a significant shareholding in Europe’s largest city centre development encompassing 5.8 million ft² (approx. 538,000 m²) of commercial, residential, retail, educational and leisure accommodation across 50 refurbished buildings.
The sale of the UK Government’s 36.5% interest was originally announced by Chancellor George Osborne in response to Queen Elizabeth II’s Speech to the House of Commons on 4th June 2015. The Government’s interest in the redevelopment (“King’s Cross Central Limited Partnership”, KCCLP) is held through its 100%-owned subsidiary, LCR (“London & Continental Railways”).
KCCLP’s principal activity has been to redevelop 67 acres of land around King’s Cross and St. Pancras stations. Other shareholders include Argent King’s Cross (the estate’s asset manager working alongside Hermes Investment Management, 32.5%) and AustralianSuper (Australian pension provider, 25%).
Launching today’s sale Transport Minister Robert Goodwill says: “By selling the Government’s shares in King’s Cross Central we are selling an asset we don’t need to keep and maximising its value to the taxpayer. The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.”
Stephen Down, Savills head of Central London investment, adds: “This investment not only offers a shareholding in a new London Estate but also a leading mixed use regeneration scheme. King’s Cross is a key European gateway to London and in creating a new area of London which combines open space with homes, offices, retail, leisure and education facilities it encompasses everything modern occupiers want and has secured an extremely impressive list of tenants and owner occupiers. With added phases of development underway, this represents excellent value in a market which is set to benefit from further rental growth.”
The 67 acre estate consists of offices, apartments, retail space, educational establishments and leisure areas with extensive public realm including 10 new parks and squares, 20 new streets and three new bridges across the Regent’s Canal. It is home to diverse, blue-chip occupiers including Google, Havas, The University of the Arts London, BNP Paribas Real Estate, and the Aga Khan Development Network. With outline planning permission in place and a track record of successful approvals, 45% of buildings are already complete or on site.
Situated at the heart of London’s transport network, the site has access to six underground lines, national services to major UK cities and international rail connections to Continental Europe via Eurostar services to Paris and Brussels.
Source: Savills
