15 November 2013
CAPITAL & COUNTIES PROPERTIES PLC
SIGNIFICANT PROGRESS FOR EARLS COURT MASTERPLAN
Capital & Counties Properties PLC is pleased to announce that two major milestones have been achieved in the process of value creation through planning and land assembly for the Earls Court Masterplan.
Formal planning consent granted
Formal outline planning consent for the Earls Court Masterplan has been granted following the signing of the Section 106 agreement between the London Borough of Hammersmith & Fulham (LBHF), the Royal Borough of Kensington and Chelsea, London Underground Limited (LUL), Transport for London (TfL) and Capco .
The Earls Court Masterplan covers an area of 77 acres and provides for 10.1 million square feet of new residential-led, mixed-use space. In July, the Mayor of London gave his consent to the redevelopment of Earls Court and the surrounding area. In August, the Secretary of State for Communities and Local Government chose not to call in the outline planning application.
The Section 106 agreement includes a series of community benefits which will be provided during the implementation of the Masterplan, including transportation improvements, new open green space and employment and skills training for the local community.
It is envisaged that the first detailed planning application, covering the Earls Court Village, will be submitted later this year.
Capco exercises Conditional Land Sale Agreement
Capco has exercised its option under the Conditional Land Sale Agreement (CLSA) which it entered into with LBHF in January 2013 in relation to LBHF's land within the redevelopment area. The CLSA was approved by the Secretary of State for the Department of Communities & Local Government in April and comprises approximately 22 acres including the West Kensington and Gibbs Green estates. Under the terms of the CLSA, Capco can draw down land in phases but no phase can be transferred unless replacement homes for the residents of the relevant phase have been provided.
Capco has already paid £30 million of the £105 million cash consideration payable under the CLSA. Exercising the option commits Capco to the remaining payments of £75 million, paid in 5 annual instalments of £15 million starting on 31 December 2015. As noted within Capco's interim results reported in July, the land relating to the CLSA will not be revalued at this time until there is greater clarity around the timing of drawdown of the land.
With the option exercised and with the outline planning consent granted, Capco can now work closely with LBHF under the detailed mechanisms within the CLSA to identify the requirements for the first tranche of replacement homes which would enable vacant possession of the first phase of land. The first land drawdown under the CLSA will not occur before December 2015.
Gary Yardley, Investment Director of Capital & Counties Properties PLC, said: "The formal planning consent, the signing of the Section 106 agreement and the exercise of the Conditional Land Sale Agreement are positive steps forward and add further momentum to the Earls Court project. These milestones will allow us to work with the local authorities to take this exciting development forward and deliver the Earls Court Masterplan which will create 7,500 much needed new homes and 12,000 jobs."
-ENDS-
For media enquiries please contact:
Capital & Counties Properties PLC |
Tel: + 44 (0) 20 3214 9188 |
Ian Hawksworth, Chief Executive Gary Yardley, Investment Director |
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Soumen Das, Finance Director |
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For financial media enquires please contact:
Hudson Sandler (UK) Michael Sandler /Wendy Baker/Katie Matthews |
Tel: +44 (0) 20 7796 4133 |
College Hill (South Africa)
Frederic Cornet |
Tel: +27 11 447 3030 Mobile: +27 (83) 307 8286 |
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For general media enquiries please contact:
Chris Rumfitt, Edelman |
Mobile: +44 (0) 7967 226646 |
Notes to Editors:
Details of the regeneration package include:
· Up to 7,500 new homes of which 1,500 are affordable and replacement homes
· Improvements to streets and public realm and the creation of 37 acres of green space, including garden squares, communal gardens and a new five acre park
· Improvements to local amenities as well as a new primary school, community centre, leisure centre, health centre, cultural space and money towards a cultural fund for the area.
· Up to 12,000 permanent jobs are expected to be created and there will be £8 million worth of employment and skills training in the local area
· There will also be significant transport improvements including improving the tube stations in the area, improved bus lanes, bus stops and service improvements, new and improved cycle lanes, three new cycle hire hubs and over 11,000 cycle parking spaces.
About Capital & Counties Properties PLC (Capco):
Capital & Counties Properties PLC is one of the largest investment and development property companies that specialises in central London real estate and is a constituent of the FTSE-250 Index. Capco holds 2.7 million square feet of assets valued at £2.1 billion (as at 30 June 2013) in two landmark London estates: Covent Garden, which has assets valued at £1.1 billion including the historic Market Building, and EC Properties including the Empress State Building together with the Venues business amounting to aggregate property assets of £970 million. The company is listed on the London Stock Exchange and the JSE, Johannesburg.
"Capco" represents Capital & Counties Properties PLC and all its subsidiary companies and group undertakings.
www.capitalandcounties.com
About the Earls Court Masterplan:
The Earls Court Masterplan is one of the largest regeneration projects in London and was approved in July by the Mayor of London, following the resolutions to grant consent from both the London Borough of Hammersmith & Fulham and the Royal Borough of Kensington & Chelsea in 2012. The Masterplan covers 77 acres of land, known as the Earls Court & West Kensington Opportunity Area, owned by Capital & Counties Properties PLC, TfL and LBHF. The Earls Court Masterplan is 10.1 million square feet of space and was designed by Sir Terry Farrell who was inspired by the best of London to create 'Four new Urban Villages and a 21st Century High Street.' The Masterplan will deliver 7,500 new homes, 12,000 new jobs as well as new open green space, health facilities, new schools, community and cultural space and improvements to the transport and infrastructure of the local area. Earls Court 1 and 2 will be part of the first phase of the Earls Court Masterplan with further phases to include the estates within LBHF and LUL's Lillie Bridge Depot if and when it is operationally feasible to do so.
