The joint venture has been formed with Capco owning 63% and TfL 37% of the shares respectively. A board of directors has been appointed by the joint venture comprising of four representatives from Capco and three from TfL, with Capco also appointed as the business and development manager to enable to the development of Earls Court 1 & 2 to be co-ordinated with the wider Masterplan.
The Masterplan will deliver 7,500 new homes and 10,000 new jobs. It will also see the development of a new primary school, a new leisure centre, new health facilities as well as community and cultural spaces. Thirty seven acres of green open space will be provided, including a new five acre park and there will also be significant improvements to the transport infrastructure including increased capacity at Earls Court, West Kensington and West Brompton underground stations.
TfL owns the freehold to the exhibition centres known as Earls Court 1 & 2 and Capco is the leaseholder of both sites. In addition to its leasehold interest, Capco owns certain other adjacent land interests, including the Northern Access Road, which will be contributed to the Joint Venture.
It is anticipated that the joint venture arrangements will complete in full once vacant possession is available, which will result in new 999 year leases over Earls Court 1 & 2 being granted to the Joint Venture. In addition, on completion the Joint Venture will acquire other smaller properties in the Earls Court area currently owned by Capco.
Arthur Lovitt, Head of the Real Estate Sector at Pinsent Masons, said: “The signing of the joint venture is a critical piece of the Earls Court jigsaw and represents a hug step forward in the delivery of this key phase of the Masterplan.
“Pinsent Masons has been advising Capco since the very early stages of this regeneration scheme and it is a project that our team is immensely proud to be involved with. We supported Capco throughout the planning process and its negotiations with the London Borough of Hammersmith and Fulham regarding the conditional land sale agreement.The scheme holds huge potential and it is fantastic to see the project expedited by the signing of this joint venture agreement.”
Gary Yardley, investment director of Capco, commented: “We are delighted to finalise this agreement and look forward to working with TfL. The re-imagination of Earls Court is moving forward and presents a unique opportunity to establish a new address in central London. Together with our partners, we will bring 7,500 new homes, 10,000 new jobs to the area, and benefits not just for the local economy, but for London as a whole.