Capital & Counties Properties and Transport for London have agreed a joint venture to enable the development of Earls Court 1 & 2 in line with the Earls Court Masterplan.
TfL owns the freehold to the exhibition centres known as Earls Court 1 & 2, and Capco is the current leaseholder of both sites.
The agreement will enable the two organisations to establish a joint entity which will own a new 999 year lease over the sites, as well as other land owned by Capco.
The plan is that ownership of the development will be split 63 per cent to Capco and 37 percent to TfL
Capco will be the exclusive development manager. The partners say this will enable a comprehensive approach to be taken for the implementation of Sir Terry Farrell’s Masterplan for the wider Earls Court and West Kensington Opportunity Area which has been approved by the Mayor of London, and which would create 7,500 homes, 12,000 jobs and new health, education, cultural and community facilities as well as 23 acres of green space including the five acre Lost River Park..
Funding for each phase of the development will be sought when it is in a position to be progressed.
Gary Yardley, Investment Director of Capco, commented: “This is a major step forward for the Earls Court Masterplan. On top of the resolution to grant planning consents, and the agreement we already have in place with LBHF, these proposals would mean that the development of Earls Court can now be progressed.”
Graeme Craig, Director of Commercial Development at TfL, said: ‘We are pleased to be making progress on a deal for the development of Earls Court 1 & 2 with Capco which will see the creation of much needed jobs and homes for London.
“It reflects a new approach we are taking with our extensive property portfolio to work with leading developers whilst retaining our interest in our properties.”
The agreement remains subject to approval by the Boards of Capco and TfL respectively, which is expected to be sought at a later date upon finalisation of the deal.