The government is selling its stake in King’s Cross Central Partnership; the group that’s developing what could be in Simon Morris’ opinion, a very lucrative London property development.
Regeneration of King’s Cross
The inner London area of King’s Cross was once regarded as a write-off. Despite its value as a critical London travel link, it was a run-down red light district. This changed in 2008; this was the year that the illustrious Guardian newspaper moved their headquarters to King’s Cross.
The area soon started to attract other prominent business employers such as Google and the University of the Arts. This spurred a major regeneration of King’s Cross which has since transformed it into one of London’s up and coming property hotspots. According to Ham High, two bedroom flats in the area now go for as much as £521,057 on average, whilst a semi-detached can sell for an average of £1,465,980.
King’s Cross Central Partnership
This wave of regeneration drew the attention of King’s Cross Central Partnership. This is the group that’s currently in the process of building the largest property development project King’s Cross has ever seen; a project which is due to be completed in 2020.
The development has already transformed the forgotten streets near King’s Cross train station into a thriving area which boasts laid back coffee shops, cool hipster bars and chic art venues. When it’s completed, the property development will include 5.8 million square feet of shops, apartments and office space. It will also provide the King’s Cross area with 20 new streets, 10 new squares and parks, 50 refurbished and new buildings, and three new walkways and bridges over Regent’s Canal.
Government sells stake
This is why estimates suggest that the property development will be worth a staggering £5 billion once it’s completed in 2020. This presents savvy investors with an opportunity, because as the Guardian recently reported, the government has decided to sell its stake in King’s Cross Central Partnership.
The government bought a 36.5% share in the property developer, which it will now sell – with the help of investment bank Lizard and estate agent Savills – for £360 million. At the same time, DHL – a logistics company – has announced that it will sell its 6% share in King’s Cross Central Partnership.
Return on investment
It has become increasingly that King’ Cross Central Partnership’s massive property development in King’s Cross could prove extremely. The government’s decision to sell its share in the group cultivating the development could provide some investors with a strong chance of generate significant return on investment.