The government announced the start of the sale process of its investment in the iconic King’s Cross Central redevelopment today (17 August 2015).
The decision to sell the government’s 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.
The sale of the government’s investment in the 67 acre site, which is being redeveloped with offices, residential and leisure properties, will be a multi-million pound deal with all proceeds returning to the Treasury.
Launching today’s sale 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 KCCLP is a significant opportunity for private capital to gain exposure to one of Europe’s most important city centre regeneration projects.
Chief Secretary to the Treasury Greg Hands said:
Cutting the deficit and building a strong economy are priorities for this government. Key to this is getting out of the business of owning assets that should be in the private sector.
Selling our stake in the land around King’s Cross is an important milestone which will raise money to pay down the public debt while also encouraging private sector investment in an important London site.
The government’s principal objective is to maximise value for money for the UK taxpayer by executing a competitive sale process. Lazard has been appointed as financial adviser to conduct the sale process, supported by Savills as real estate advisers.
The 67-acre King’s Cross estate is being developed into 8 million square feet of mixed use space, consisting of offices, apartments, retail space, educational establishments and leisure areas across 50 new and refurbished buildings, and with 26 acres of public realm, including 10 new parks and squares, 20 new streets and 3 new bridges across the Regent’s Canal. Its occupiers include Google, the Aga Khan Development Network, and University of the Arts London.
The site is adjacent to King’s Cross Station, which services 6 London Underground lines, and St Pancras Station, from where Eurostar services connect to Paris and Brussels.
Prospective investors should contact Lazard by 7 September 2015.