Government sells its investment in King’s Cross development
The government announced the £371 million sale to AustralianSuper of its investment in the iconic King’s Cross development today, Friday 22 January.
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.
Announcing today’s sale, Department for Transport Minister of State Robert Goodwill said:
“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.
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 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.
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 square foot 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.“
The Chairman of KCCLP, Sir David Clementi said:
“The King’s Cross development partnership’s long-term approach has created one of Europe’s most exciting places to live, work, or visit – a real asset to London. I would like to thank LCR and DHL for their support for the project over many years. AustralianSuper’s increased share demonstrates its confidence in the remaining future growth in value of King’s Cross, as we enter the final five years of construction.”
- Development to radically improve Tottenham Hale centre gets go-ahead
- Developer Argent appoints Head of Construction
- Leadership at Argent
- King’s Cross developer reveals proposals for a new heart for Tottenham Hale
- Developer Argent appoints head of assets for King’s Cross
- Major study reveals social and economic value of King’s Cross regeneration
- Google submits plans for proposed King’s Cross office
- Agreement reached for major programme to transform Tottenham Hale
- Argent Honoured for Special Achievement in GIS
- Plans for joint venture’s development at Brent Cross South approved by Barnet Council
- Airport City Manchester moves into new phase
- Government sells its investment in King’s Cross development
- Argent announces new appointments to senior management team
- James Wates CBE joins Argent as a Non-Executive
- AustralianSuper to enter London market at King's Cross
- Argent Related wins Brent Cross South development opportunity
- Formation of Argent Related
- Work at Paradise will start in January 2015
- Paradise Circus architect chosen for first phase buiding
- Contractor for Paradise Circus announced
- Argent's London office wins BCO award
- Two Argent Partners jointly win award
- Global partners selected for joint venture on Manchester's Airport City
- Paradise Circus - Joint Venture approved by Cabinet
- Argent & Hermes Clients Funding Residential Development at King's Cross
- Argent moving to a Limited Liability Partnership as the company looks to the future