Press releases
Land Securities forward sells Park House, Mayfair development
17 June 2010Land Securities today announces that it has agreed to forward sell its proposed 310,000 sq ft retail, office and residential development at Park House, 453/497 Oxford Street, London, W1 to Barwa Real Estate Q.S.C ("Barwa"). Construction of the scheme started on site in May 2010, with completion of the development due in November 2012.
Barwa will pay £250m for the site, all of the construction costs and a profit share on completion. Of the £250m site price, £225m will be paid immediately and £25m will be paid on practical completion.
Land Securities will act as development manager responsible for delivery of the project with construction works paid for by Barwa.
A profit share will be paid by Barwa within 12 months of practical completion. Based on current expectations as to office and retail rental values this profit share is estimated to be c£33m and is capped at £50m.
Commenting on the transaction, Robert Noel, Managing Director of Land Securities’ London Portfolio, said: “Park House is the largest speculative development in Mayfair for a generation and this sale enables us to realise the majority of our profit ahead of schedule, with significantly reduced risk and with no capital employed. We will recycle the capital to invest into our growing speculative development pipeline targeting the further return opportunities offered to our shareholders through early delivery into a forecast supply constrained market.”
Land Securities acted directly and CB Richard Ellis advised Barwa and PCP in the transaction.
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For further information, please contact:
Land Securities
Donal McCabe / Melissa Winsor
Tel: +44 (0) 20 7024 5460 / 5079
For more information on the Land Securities' development pipeline please click here
