TfL holds the freehold to 35 acres of land, forming part of the 70 acres Earls Court & West Kensington Opportunity Area in West London. The challenge was to transform this area of low value housing and commercial uses, into a new prime residential and vibrant mixed-use London quarter. The project would require working with partners to devise a scheme; addressing operational issues relating to live structures and appraising and apportioning returns between project stakeholders.
Working with TfL’s development partner, CapCo, establish a scheme that maximises the potential of the site through a coordinated and phased Masterplan approach.
Appraise the financial returns from the 20 year project under a range of growth and exit scenarios. Value existing interests, calculate synergistic value, apportion financial proceeds between parties, and analyse project funding requirements.
Establish optimal delivery vehicle to maximise landowner returns over the life of the project, and negotiate with other stakeholders to achieve this.
Resolution to grant planning consent for a scheme of 11.4m sq ft of accommodation was achieved in November 2012. The scheme will deliver over 7,000 new homes together with retail, commercial and community facilities, which will create 12,000 permanent new jobs and £1bn pa spend to the local economy.
An innovative joint venture structure was established to maximise TfL’s stake in the eventual development, avoid equity dilution and take advantage of the scheme’s strong growth prospects. Heads of Terms have been agreed, with practical commencement due in 2015.
The scheme is the most exciting and high value private regeneration project in the UK.