National Grid is close to signing section 106 agreements for 6,000 homes as part of a plan to enable the break-up of the surplus portfolio it failed to sell in the credit crunch.
The energy company cancelled plans for an £800m sell-off of its property arm as market conditions deteriorated in 2008. It has been focusing on pushing through consents instead in a bid to attract partners.
A £35m S106 package for the Southall Gasworks site in Ealing, covering transport improvements, a new health centre and school, has just been agreed with Mayor of London Boris Johnson. The scheme proposes 3,750 homes and 300,000 sq ft of shops and offices.
National Grid is also in advanced talks to conclude a
S106 package for its £1bn Northfleet project in Kent Thameside – a 93-acre scheme with up to 1,500 homes, 108,000 sq ft of offices and 27,000 sq ft of retail as well as a hotel.
Phil Edwards, head of sales and lettings, said: “National Grid Property is looking at joint-venture approaches on some of its larger sites. This reflects our desire to share in the upside potentially available on longer-term regeneration projects.”
Sales slowdown
National Grid has interests in around 10,000 properties in the
Sales of surplus sites fell from an average of £50-£60m pa to £23m in 2008/2009, with only a handful of deals completed in the 2009/2010 period. It expects sales of £30m in the year 2010/11.
