Capital & Counties Properties Plc (CAPC) and Transport for London agreed on the outline of a venture that would develop land at Earls Court Exhibition Centre in the southwest corner of central London.
The two companies will develop the sites and an undisclosed amount of additional land owned by CapCo if the deal is approved by both boards of directors, according to a joint statement today. TfL, London’s subway- and bus-system operator, would likely have a 37 percent stake in the venture and CapCo would own the rest, they said in the statement.
“The revenue generated from the deal will be reinvested back into London’s transport network to deliver increased and improved services,” Graeme Craig, director for commercial development at TfL, said in the statement. “It reflects a new approach we are taking with our extensive property portfolio to work with leading developers whilst retaining our interest.”
Developers including CapCo, part owner of London’s Covent Garden market, that own land for housing are benefiting from rising home prices in London, low interest rates and U.K. government incentives to make it easier for people to buy residences. About 7,500 homes are planned at Earls Court and West Kensington on 77 acres (31 hectares) of land owned by the London-based developer, according to the statement.
CapCo owns long-term leases on both exhibition buildings at Earls Court, which is about a two-mile walk from Hyde Park. TfL holds the freehold, meaning it owns the land and has no control over the buildings.
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