TfL owns the freehold to the Earls Court 1 & 2 exhibition centres while Capco is the leaseholder. The new JV will own new 999 year leases over the sites, as well as land owned by Capco alongside to the exhibition centres. Capco will own 63% of the JV and TfL will own 37%.
The JV will employ Capco as development manager to implement architect Sir Terry Farrell's masterplan for the wider Earls Court and West Kensington Opportunity Area.
The Earls Court Masterplan envisages the construction of 7,500 homes, new health, cultural and community facilities and 23 acres of green space. It received planning consent from the London Borough of Hammersmith & Fulham and the Royal Borough of Kensington & Chelsea in November 2013.
TfL commercial development director Graeme Craig said: "We are delighted to reach the final stages of the deal for the development of Earls Court 1 and 2 with Capco. The realisation of the masterplan will see the creation of much needed jobs and homes for London. The revenue generated from the development of Earls Court 1 and 2 will be reinvested back into the transport network to improve services for our customers.
"This joint venture reflects our new approach of retaining and investing in our assets, working with leading developers to deliver real long-term value for fare and taxpayers."
Capco investment director Gary Yardley added: “Following the land agreement we reached with Hammersmith & Fulham Council last year and the outline planning consent we have in place, the reimagination of Earls Court is now moving forward.”
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