Chinese company Wanda Commercial Properties has bought a major London development site for £470m (€535m).
The 10-acre Nine Elms Square, part of regeneration area south of the River Thames, was sold by a joint venture between UK-listed company St Modwen Properties and Vinci.
It is home to the New Covent Garden flower market, which is being temporarily relocated to allow for the development of mixed-use property, including a residential tower.
St Modwen Properties said it expected its share of the sale proceeds to be £190m after costs and tax, and that £70m would be held in a restricted development account to fund its share of future obligations to build new market facilities.
Mark Allan, chief executive of St Modwen Properties, said: “The sale of Nine Elms Square is an important milestone, which will realise the capital required to fund the construction of over 500,000sqft of new market facilities.
“It also crystallises a significant element of the value we have been able to create on this complex, inner London development site.”
The company said the rest of its share of the money would be used to reduce group borrowings and for ongoing development activity.
After the sale, and over the next 10 years, the St Modwen-Vinci joint venture will stay closely involved in the wider regeneration of the Nine Elms area through its development agreement with Covent Garden Management Authority, the firm said.
