Government sells stake in King's Cross development for £371m to AustralianSuper

 
Catherine Neilan
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There are still five years left before the development will be complete (Source: Getty)

The government has sold it stake in the King's Cross development - currently part-way through a process that will overhaul the 67-acre site - to pension fund AustralianSuper, for £371m.

The decision to sell the site was made back in August, when Lazard and Savills were hired to handle the deal. The government's 36.5 per cent stake had been valued at £345m, but it was expected that more would be raised from the eventual sale.

The Treasury said the money raised would go back to shoring up the country's finances.

Department for Transport minister Robert Goodwill said: "I am delighted that the sale of government’s shares in King’s Cross Central, an asset we no longer need to keep, has enabled us to realise its value for the taxpayer. This sale is an excellent example of how we are reducing the deficit and delivering lasting economic security for working people."

The stake is held by the government's wholly-owned subsidiary, LCR, which has overseen the development at King’s Cross for 20 years.

​The chairman of KCCLP, Sir David Clementi, added: "The King’s Cross development partnership’s long-term approach has created one of Europe’s most exciting places to live, work, or visit — a real asset to London.

"I would like to thank LCR and DHL for their support for the project over many years. AustralianSuper’s increased share demonstrates its confidence in the remaining future growth in value of King’s Cross, as we enter the final five years of construction."