The government announced the £371m (€491.7m) sale to AustralianSuper of its investment in the iconic King’s Cross development on Friday, 22 January 2016.
This multi-million pound sale of the government’s investment in the 67-acre site, which is being redeveloped with offices, residential and leisure properties, has delivered real value-for-money for taxpayers through a competitive auction process, with all proceeds returning to the Treasury.
AustralianSuper, the largest pension fund in Australia, has grasped this significant opportunity for private capital to gain exposure to one of Europe’s most important city centre regeneration projects.
Department for Transport Minister of State Robert Goodwill commented: “I am delighted that the sale of government’s shares in King’s Cross Central, an asset we no longer need to keep, has enabled us to realise its value for the taxpayer. This sale is an excellent example of how we are reducing the deficit and delivering lasting economic security for working people.”
The decision to sell the investment in King’s Cross Central Limited Partnership (KCCLP), which is developing land around King’s Cross Station, was announced by the Chancellor in June, with the sale process starting in August 2015.
Chief Secretary to the Treasury Greg Hands said: “I am delighted that the government has sold its shares in King’s Cross, raising another £371m (€491.7m) for taxpayers.
“At the Spending Review the Chancellor set out how the government will fix the public finances by eliminating Britain’s deficit by 2019-20.
“Central to our plan is the sale of government assets to help pay down the national debt and ensure economic security for working people.”
The government’s priority was maximising value for money for the taxpayer through a competitive sale process. Lazard, as financial adviser, conducted the sale process, supported by real estate advisers Savills and legal advisers Herbert Smith Freehills.
The government’s stake in King’s Cross is held by its wholly-owned subsidiary, LCR, which has overseen the development at King’s Cross on behalf of government for 20 years. Since the delivery of HS1 and the restoration of St. Pancras International in 2007, LCR has worked closely with Argent, Hermes and DHL Exel through KCCLP. Since then, significant progress has been made on the 8 million ft² (743,000m²) development to put King’s Cross on the map as a destination for London.
AustralianSuper head of property Jack McGougan said: “We are pleased to have secured an increased stake in this iconic mixed use development and look forward to working with our co-investors and the Argent development team to create a vibrant, commercially successful neighbourhood in Central London.”
