Wanda Commercial Properties, part of Chinese property developer Dalian Wanda, has purchased the four hectare Nine Elms Square site in southwest London from the scheme's joint venture development partners Vinci St Modwen (VSM) for £470 mln (€532 mln).
UK-based regneration specialist St Modwen Properties, which formed the 50:50 joint venture with French construction and property group Vinci, was selected by the Covent Garden Market Authority (CGMA) in March 2012 to deliver the regeneration of the New Covent Garden Market site in Nine Elms, London.
'The sale of Nine Elms Square is an important milestone, which will realise the capital required to fund the construction of over 500,000 sq ft (46,450 m2) of new market facilities,' commented Mark Allan, chief executive of St Modwen Properties. 'It also crystallises a significant element of the value we have been able to create on this complex, inner London development site. Together with our joint venture partner, Vinci, we remain very much committed to the longer term regeneration of Nine Elms and are excited about the opportunities ahead.'
The multi-phase project is the largest proposed regeneration scheme in Nine Elms on the South Bank, itself one of London's key development areas for new mixed-use development.
Following the sale and over the course of the next 10 years, VSM said it would remain closely involved in the wider regeneration of the Nine Elms area through its development agreement with CGMA which will see it provide new market facilities for New Covent Garden Market.
As the joint venture progresses with the delivery of the new market, the remaining four hectares of development land will be released in phases for future transformation.
However, VSM said it would have no involvement in the future development of the Nine Elms Square site itself which will now be progressed by Wanda HK.
Completion is expected to occur later in the summer, following demolition of the former flower market.
