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Wed May 22 2024

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Land deal heralds £110m Greenwich development

3 Jul 12 Property developers Development Securities and Cathedral Group have completed the acquisition of a 2.2-acre site in the centre of Greenwich for £16m, enabling construction to start on a £110m regeneration scheme.

Development Securities entered into a joint venture with Cathedral Group in September 2010 and secured planning consent in 2011 to regenerate a derelict industrial site in the south London borough into a 350,000 sq ft mixed-use development, called The Movement, or even The MVMT.

Under the scheme, Willmott Dixon has spent £16.2m to take ownership of the housing land within the scheme. The housing element has a gross development value of £50m.

In addition, contracts for sale have been exchanged with McLaren at £8.3m for the land element of a 358-bed 'student village' with the deal due to complete in August.

The developers will now start enabling and infrastructure works immediately to prepare the site for development.

A 106-bed hotel element of the scheme has been pre-leased to Travelodge and negotiations are in hand regarding its long-term institutional funding.

The final and smallest stage of the regeneration scheme comprises circa 25,000 sq ft of mixed-use leisure and retail space.

Development Securities chief executive Michael Marx said: "This is a good example of the successful implementation of our strategy to create value by repositioning secondary or tertiary real estate into prime or near-prime development via the process of regeneration."

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