London-listed development and investment company Development Securities has agreed to purchase an initial 39% stake in a site at Hammersmith Grove from London Underground for £19 mln (EUR 28 mln) in cash and debt. The site is a surface car park, but Development Securities said that it has applied to develop an office-led mixed-use scheme with an estimated value on completion of £250 mln. The deal is conditional on development consent being obtained.
London-listed development and investment company Development Securities has agreed to purchase an initial 39% stake in a site at Hammersmith Grove from London Underground for £19 mln (EUR 28 mln) in cash and debt. The site is a surface car park, but Development Securities said that it has applied to develop an office-led mixed-use scheme with an estimated value on completion of £250 mln. The deal is conditional on development consent being obtained.
Construction is expected to begin in January 2008 with completion in spring 2010. The development project is a town centre regeneration scheme that includes 30,000 m2 of offices, a 1,800 m2 cinema and 1,400 m2 of restaurants and retail space. There will also be a 'significant new area of public open space'.
The acquisition of the site is being made through a Jersey property unit trust called NBD Hammersmith Trust in which the Royal London Mutual Insurance Society and the National Bank of Dubai own a majority stake. If Development Securities maintains its holding at 39%, an additional £3 mln investment will be required over the 26 months of the construction.