14th Jul 2015 08:09
LONDON (Alliance News) - FTSE 250-listed property developer Derwent London PLC on Tuesday said it has agreed revised terms on its collaboration arrangement with Crossrail Ltd on the 1 Oxford Street development in central London.
The initial agreement to develop the site above the Tottenham Court Road London Underground station was signed in 2007, with Derwent surrendering its existing holdings in 2009 as the start of the construction of Crossrail began.
The revised agreement outlines the terms whereby Derwent will once more own the key interest in the redevelopment, it said.
Derwent will enter into a new 150-year lease for the site for a GBP55 million payment, which will become payable once the development reaches practical completion. The new Tottenham Court Road Crossrail station is set to be completed in spring 2017, with passenger services to start in December 2018.
Crossrail will get a ground rent equivalent to 5% of the rent on the commercial space at 1 Oxford Street and will get 16% of any development profit. Work on the development is due to start in the first quarter of 2018.
"1 Oxford Street is one of the best addresses in London. We are very excited by the potential of this project and the area, which will be transformed by the opening of Crossrail in 2018," said Derwent Chief Executive John Burns.
Shares in Derwent were down 0.4% to 3,639.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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