This article is from the Australian Property Journal archive
LEND Lease's share price soared by 10% yesterday after it won the £1.5 billion ($A2.7 billion) Elephant & Castle regeneration project in London.
The project is a big move for the Southwark Council, against the backdrop of a recession.
The Council and Lend Lease have agreed that the current exclusivity arrangement will remain in place to enable both parties to work together to formalise a regeneration agreement in 2010.
“We are very pleased with the Council’s decision and look forward to being a partner in the delivery of this landmark project which strengthens Lend Lease’s position in the UK market.” Lend Lease CEO Steve McCann said.
Southwark Council leader Cllr Nick Stanton said this decision represents a very good deal for local tax payers and excellent value for money.
“Which is particularly impressive as we have been negotiating this agreement against the back drop of a national recession,” he added.
The project is one of the most significant schemes of its type in Europe, comprising over 300,000 sqm of space. The location, within two miles of London’s West End, is unrivalled for a development of this scale.
The scheme comprises six phases. The first phase demolition is scheduled to commence in February 2010. Detailed planning consent for the first phase is expected to be achieved by April 2011. Both parties have expressed their commitment to work together on the redevelopment of all six phases of the site.
The executive has also asked council officers to continue negotiations with Transport for London and the Greater London Authority to safeguard the viability of all phases of the project, including the shopping centre.
The positive news saw Lend Lease shares jumped 82 cents to $9.90.
Australian Property Journal
