Sale begins today (17 August 2015) of government’s stake in 67 acre development site around King’s Cross to "help cut deficit and build strong economy".
The decision to sell off the government’s 36.5% interest in King’s Cross Central Limited Partnership (KCCLP), was was announced by the Chancellor in June and presents a significant opportunity for private developers to acquire 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."
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 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, BNP Paribas Real Estate, the Aga Khan Development Network, and University of the Arts London.
The government's stake has been previously valued at £345m, but chief secretary to the Treasury Greg Hands indicated that the government would seek to make even more from the sale.
Investment group Lazard and estate agent Savills are handling the deal. Interested parties have been urged to contact Lazard by 7 September.