Government hires Lazard and Savills as multi-million pound sale of 36.5 per cent stake in King's Cross Central kicks off

 
Catherine Neilan
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Kings Cross: The area around the station is being redeveloped into an mixed use site stretching across eight million square feet (Source: Getty)
The government has kicked off the sale of its 67-acre site around London's King's Cross station.
Investment group Lazard and high end estate agent Savills are handling the deal. Interested parties have been urged to contact Lazard by 7 September.
The decision to sell the government’s 36.5 per cent stake in King’s Cross Central (KCCLP) – which is being redeveloped into a mixed-use site stretching across eight million square feet comprising offices, residential and leisure properties - was announced by the chancellor in June.
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.
He said: "Selling our stake in the land around King’s Cross is an important milestone which will raise money to pay down the public debt while also encouraging private sector investment in an important London site.
“The government’s principal objective is to maximise value for money for the UK taxpayer by executing a competitive sale process.”
The potential end value of the total development when completed in five years' time will be in excess of £5bn, Savills estimates.
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.”
It was “a significant opportunity for private capital to gain exposure to one of Europe’s most important city centre regeneration projects,” Goodwill added.
On top of the government's stake, Lazard and Savills are also handling the sale of DHL's six per cent holding. The two are being offered in conjunction with each other as a stake totalling 42.5 per cent.
Savills head of Central London investment Stephen Down said: “It encompasses everything modern occupiers want and has secured an extremely impressive list of tenants and owner-occupiers. With added phases of development underway, this represents excellent value in a market which is set to benefit from further rental growth.”
Current occupiers of the site include Google, the Aga Khan Development Network, and University of the Arts London.

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