28th Mar 2014 08:41
LONDON (Alliance News) - Capital & Counties Properties PLC Friday said it has formed a joint venture with Transport for London that will allow the re-development of the Earls Court exhibition centres in London to go ahead, a key part of a much bigger scheme for redeveloping the area.
The re-development of Earls Court is currently one of the most high-profile property schemes in London. The scheme, which could take a decade or more to complete, involves the redevelopment of the Earls Court 1 & 2 exhibition centres, which is proving to be the most controversial part of the plan. It is bring backed by London Mayor Boris Johnson, but has an array of opponents.
The new joint venture, which will be called Earls Court Partnership Ltd and be owned 63% by Capital & Counties, or Capco, and 37% by TfL, will allow the re-development of the exhibition centre sites to go ahead. TfL currently owns the freehold to the centres and Capco leases them.
"It is anticipated that the joint venture arrangements will complete in full once vacant possession is available, which will result in new 999 year leases over Earls Court 1 & 2 being granted to the joint venture. In addition, on completion the joint venture will acquire other smaller properties in the Earls Court area currently owned by Capco," the property developer said in a statement.
The wider plan for the Earls Court area includes the construction of 7,500 new homes, a new primary school, leisure centre, health facilities and a park. The transport infrastructure will also be updated, increasing capacity at Earls Court, West Kensington and West Brompton underground stations.
Capital & Counties shares were up 2.7% at 362 pence early Friday, one of the biggest gains on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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