U.K. to Sell Stake in Europe’s Biggest Regeneration ProjectRoss Larsen
The U.K. government and Deutsche Post AG’s DHL parcel service plan to sell a combined 42.5 percent stake in King’s Cross Central, the largest urban regeneration project in Europe.
The holdings in the 67-acre residential, retail and office project are being marketed by Savills Plc and Lazard Ltd. is acting as financial adviser, according to separate statements Monday from the government and the broker. The stake is expected to raise about 345 million pounds ($540 million) according to the Treasury.
The project will have 5.8 million square feet (540,000 square meters) of space across 50 buildings near London's King’s Cross and St. Pancras railway stations, Savills said. Google Inc. and BNP Paribas Real Estate are among the current tenants in the development.
Chancellor of the Exchequer George Osborne has announced plans to sell publicly owned assets, including stakes in Royal Bank of Scotland Plc and Royal Mail Plc, to cut the national debt. The state owns 36.5 percent of the London project, while DHL holds 6 percent.
“We are selling an asset we don’t need to keep and maximizing its value to the taxpayer,” Transport Minister Robert Goodwill said in the statement. “The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.”