Battersea

Overseas investor snaps up £470m Nine Elms site



St Modwen Properties PLC has announced that VINCI St Modwen (VSM) has exchanged contracts for the sale of its interest in the 10-acre Nine Elms Square site in London for £470m.

VSM’s share is to be sold to Wanda Commercial Properties Hong Kong Co Ltd with completion expected to occur later in the summer.

VSM is St Modwen’s 50/50 joint venture with VINCI PLC.

St Modwen expects its share of VSM’s cash proceeds after overage, tax and enabling costs to be £190m.

Some £70m of this will be placed in a restricted development account to fund its share of the completion of 500,000 sq ft of new purpose-built market facilities and associated infrastructure (£140m for VSM).

St Modwen will use the remaining proceeds to reduce group borrowing and fund ongoing development activity.

VSM will remain involved in the wider regeneration of the Nine Elms area over the next 10 years via its development agreement with Covent Garden Market Authority.

This will see it provide new market facilities for the area and in doing so secure the existing 2,500 market jobs.

As the joint venture progresses with the delivery of the new market, the remaining 10 acres of land will be built into three areas known as Nine Elms Gardens, Nine Elms Grove and Thessaly Road.

These areas will feature a mix of residential, commercial, retail and leisure uses.

Mark Allan, chief executive of St Modwen Properties PLC, said: "The sale of Nine Elms Square is an important milestone, which will realise the capital required to fund the construction of over 500,000 sq ft of new market facilities.

“Together with our joint venture partner VINCI PLC, we remain very much committed to the longer-term regeneration of Nine Elms and are excited about the opportunities ahead."


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