Wandsworth Council is to receive an additional £40m from Ballymore.
A legal agreement between Wandsworth and developer Ballymore entitles the council to a share of sales revenue on the Embassy Gardens scheme if values increased beyond a set benchmark.
The ‘review mechanism’ was set up two years ago as part of the development’s planning consent.
Ballymore has now agreed to make the maximum £40m payment which will be collected by the authority in stages. The windfall comes on top of the £55m Ballymore will contribute to new infrastructure in Nine Elms.
Wandsworth Council is in the early stages of planning around 58 new affordable rent homes in this part of Battersea and say the additional £40m could see that programme expanded further.
Ravi Govindia, leader of Wandsworth Council and co-chair of the Nine Elms Vauxhall Partnership, said: “The people of Battersea will share in this scheme’s success. The £40mn comes in addition to the affordable homes built on the site and the £55mn Ballymore will contribute to upgrading local infrastructure.”
Throughout Nine Elms, everything from roads to basic utilities are being improved to prepare the area for an increase in homes, jobs and visitors. The combined cost of the overhaul is expected to be around £1bn which, say the council, is being funded by the private sector.