The UK government has kicked off the sale of its investment in the massive King’s Cross Central redevelopment in London, with the aim of using the proceeds to help cut the public deficit and bolster the economy.
The UK government has kicked off the sale of its investment in the massive King’s Cross Central redevelopment in London, with the aim of using the proceeds to help cut the public deficit and bolster the economy.
The sale of the 27-hectare site, which is being redeveloped into office, residential and leisure space, will be a ‘multi-million pound deal’ with all proceeds returning to the Treasury, property adviser Savills said.
Launching the sale on Monday, transport minister Robert Goodwill said: ‘By selling the government’s shares in King’s Cross Central we are selling an asset we no longer need to keep and realising its value for the taxpayer. The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.’
The government’s sale of its 36.5% interest in King’s Cross Central Limited Partnership (KCCLP) is seen as a significant opportunity for private capital to gain exposure to one of Europe’s most important city centre regeneration projects.
KCCLP’s principal activity has been to redevelop the 27 hectares 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 pension provide AustralianSuper (25%).
The site is adjacent to King’s Cross Station, which services six London Underground lines, and St Pancras Station, from where Eurostar services connect to Paris and Brussels.
Lazard has been appointed as financial adviser to conduct the sale process, supported by Savills on the real estate side.
