Hammersmith & Fulham Council’s cabinet has recommended its full council approve plans to borrow £64m to acquire the commercial elements from its joint venture scheme with A2 Dominion at King Street.
The regeneration plans, designed by Rogers Stirk Harbour + Partners, include 64,701 sq ft of office space, 5,629 sq ft of office start-up units and a new four-screen cinema and restaurant.
The funding for the purchase could be sourced from either the Public Works Loan Board, the open market or potentially through the sale of a 125-year lease.
If the council retained control over the buildings following its acquisition it would be responsible for finding tenants, but expects rental payments over the next 45 years to cover the cost of the acquisition if it retains the buildings for the entire period. At the end of the period the commercial buildings are anticipated to have a value of approximately £116m.
Hammersmith & Fulham Council cabinet member for the economy Andrew Jones said in a report to the council that negotiations were already under way with potential occupiers.
In addition, under its Civic Campus Programme, the council is also looking for approval to borrow £25m to purchase a 50% stake in its joint venture limited liability partnership with A2 Dominion at the point at which the new town hall extension, part of the scheme, is handed over to the council.
This stake purchase is to ensure the partners share equally the risks and rewards of the project, according to Jones’s report.
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