The UK’s Department for Transport and HM Treasury reported on Monday that the multi-million pound sale of the government’s investment in the King’s Cross Central redevelopment has commenced, with the Treasury benefiting from all proceeds.
George Osborne, the Chancellor of the Exchequer, had announced in June that the government planned to sell the its 36.5% stake in King’s Cross Central Limited Partnership (KCCLP), which is developing the 67 acre site around King’s Cross, an inner city area of London which is the location and namesake of King’s Cross railway station.
The King’s Cross estate is adjacent to King’s Cross Station, which services six London Underground lines, as well as nearby St Pancras Station, where Eurostar services connect to Paris and Brussels. The redevelopment is comprised of eight million square feet of mixed use space that includes offices, apartments, retail space, educational establishments and leisure areas across 50 new and refurbished buildings. There is also 26 acres of public realm, including 10 new parks and squares, 20 new streets and three new bridges.
According to HM Treasury, the principal objective of the divestment is to maximise value for money for the UK taxpayer by executing a competitive sale process. Lazard has been appointed as financial adviser to conduct the sale process, supported by Savills as real estate advisers.
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.
Chief Secretary to the Treasury Greg Hands added:
“Cutting the deficit and building a strong economy are priorities for this government. Key to this is getting out of the business of owning assets that should be in the private sector.
“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.”