St. Modwen Venture Weighs Sale of $893 Million London Site

St. Modwen Properties and France’s Vinci SA are considering the sale of a 10-acre (4-hectare) site near Battersea Power Station in London, the U.K. developer said on Tuesday.

The plot at New Covent Garden Market has planning approval for more than 1,800 homes and is valued at 621 million pounds ($893 million), Birmingham-based St. Modwen said in a presentation to investors. The site may be offered toward the middle of the year, Chief Executive Officer William Oliver said on a call with analysts.

New Covent Garden Market development site sits, left, near Battersea Power Station, right, in London.
New Covent Garden Market development site sits, left, near Battersea Power Station, right, in London.
Source: Glass Canvas for GQ Design

“This is 10-acres of land we’ll be putting on the market next to the American Embassy, overlooking the Thames, overlooking the Houses of Parliament,” Oliver said. “Even on a European basis, it is one of the primest pieces of land that will come to the market in the next year or two.”

Developers are competing to attract buyers for 18,000 new homes planned in the Nine Elms district, which stretches from Battersea Power Station to Vauxhall. Demand for London homes under construction slumped by 19 percent in the fourth quarter as rising sales taxes and global market turmoil damped demand.

Chancellor of the Exchequer George Osborne will raise the stamp-duty rate for purchases of buy-to-let and second homes to as much as 15 percent for the portion above 1.5 million pounds from April.


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