Capital & Counties Entitled to Buy Land for Earls Court Project

Capital & Counties Properties Plc (CAPC) said it will be entitled to buy a 22-acre area for 105 million pounds ($166 million) as a part of an 8 billion-pound development in London’s Earls Court and West Kensington.

The developer, known as CapCo, can acquire Hammersmith & Fulham council’s land in the Earls Court and West Kensington Opportunity Area for cash consideration of 105 million pounds, plus re-provision of the 760 homes currently on housing estates there, the company said in a statement today citing a report published by the council.

In addition to the 15 million pounds it paid in July 2011, at time of entering into the exclusivity agreement with the council, CapCo would initially acquire the 11 Farm Lane and Gibbs Green School sites for another 15 million pounds. CapCo would also have the option, exercisable until 2017, to buy the council’s remaining land via a series of payments totaling an additional 75 million pounds, according to the statement.

Currently “no transaction has been agreed between the parties and there is no certainty of a transaction being concluded,” the company said.

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net