Wanda HK is to buy St. Modwen’s Nine Elms Square site in Vauxhall, SW8, for £470m.
It owns the site though its 50/50 joint venture with VINCI, and which has exchanged on the 10-acre site with Wanda Commercial Properties (Hong Kong).
St. Modwen said it expects its share of the proceeds after overage, enabling costs, and tax to be £190m. £70m of this will be held in a restricted development account to fund 500,000 sq ft of market facilities.
The site, part of the New Covent Garden Market redevelopment, has outline consent for 1,821 flats across three towers of between 32 and 54 storeys.
Wanda owns the adjacent site, One Nine Elms, which has planning permission for two towers and 487 apartments.
The Nine Elms Square site was one of four St. Modwen and Vinci owned as part of the New Covent Garden Market redevelopment.
The remaining 10 acres of development land will be released in three phases: Nine Elms Gardens, Nine Elms Grove and Thessaly Road.
Completion on the deal is expected to occur later in the summer, following demolition of the former flower market. St. Modwen said it will report an outcome for the transaction in line with book value.
Chief executive Mark Allan said: “The sale of Nine Elms Square is an important milestone, which will realise the capital required to fund the construction of over 500,000 sq ft of new market facilities. It also crystallises a significant element of the value we have been able to create on this complex, inner London development site.”
JLL was advising St. Modwen and Vinci on the sale.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
