The details of a £250m funding package for King’s Cross Central development in London have been revealed today.
As tipped by Property Week (24.10.08) the existing investors in the scheme - the King's Cross Central Limited Partnership backed by Argent Group and Hermes Real Estate, on behalf of the BT Pension Scheme, London & Continental Railways and DHL Exel Supply Chain – have committed £150m over the next three years for the scheme.
The University of the Arts London, which agreed last year to move its campus to the 67 acre central London development, has entered into a £100m construction contract for its campus to house more than 6,500 students and staff from September 2011.
The £150m investment from the King's Cross Central Limited Partnership will allow for:
-The laying out of Granary Square, to be one of the largest public squares in London
-The construction of an energy centre and a district heating grid to enable carbon savings at the site;
-The first of three bridges across the Regent’s canal in preparation for construction of the Boulevard providing links to St Pancras International and King’s Cross stations;
-Two key roads to the north of the canal linking York Way to the development;
-Major improvements to the canal itself;
-A significant upgrade to the Great Northern Hotel.
Last year detailed permission was granted by Camden Council for 550,000 sq ft of space in the Granary Complex, which includes the University of the Arts London campus.
Sir David Clementi, chairman of King’s Cross Central, said today: ‘This is it. We are on the way. It has been ten years in the planning and we are going forward now.'
Argent joint chief executive David Partridge, said overall that the total investment in the area including all the transport infrastructure would reach more than £1bn.
Roger Madelin, joint chief executive of Argent King’s Cross, the asset and development manager of King’s Cross Central, said: ‘Last year we said King’s Cross is ready for business. Now it’s in business.’
Detailed designs for the 520,000 sq ft BREEAM Excellent building which includes Sainsbury’s new store support centre were approved by Camden Council last month.
The letting to Sainsbury’s for its head office development, following a move from High Holborn, is still on track but reliant on Sainsbury’s exiting its existing lease.