Wrap Text
Discussions between Capco and TfL advance
to bring forward the Earls Court Masterplan
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom
and Wales with registration Number 07145041 and
registered in South Africa as an external company with
Registration Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36
PRESS RELEASE
18 July 2013
DISCUSSIONS BETWEEN CAPCO AND TfL ADVANCE
TO BRING FORWARD THE EARLS COURT MASTERPLAN
Capital & Counties Properties PLC (“Capco”) and Transport for London (TfL) have agreed to pursue
proposals to settle heads of terms for a joint venture to enable the development of Earls Court 1 & 2
in line with the Earls Court Masterplan. This approach was endorsed by TfL’s Finance & Policy
Committee which met on 18 July.
TfL owns the freehold to the exhibition centres known as Earls Court 1 & 2, and Capco is the current
leaseholder of both sites. The agreement will enable the two organisations to establish a joint entity
which will own a new 999 year lease over the sites, as well as other land owned by Capco. It is
envisaged that ownership of the development will be split 63 percent to Capco and 37 percent to
TfL, which reflects the value created by combining both organisations respective freehold and
leasehold interests. No cash consideration will be payable by either party.
Under the joint venture, Capco will be the exclusive development manager. This will enable a
comprehensive approach to be taken for the implementation of Sir Terry Farrell’s Masterplan for the
wider Earls Court and West Kensington Opportunity Area which was approved by the Mayor of
London on 4 July 2013. Funding for each phase of the development will be sought when it is in a
position to be progressed.
Gary Yardley, Investment Director of Capco, commented: “This is a major step forward for the Earls
Court Masterplan. On top of the resolution to grant planning consents, and the agreement we
already have in place with LBHF, these proposals would mean that the development of Earls Court
can now be progressed. We look forward to working with TfL to deliver the substantial benefits to
London and the local community, creating much needed new homes and new jobs.
The Earls Court Masterplan area represents a unique opportunity to regenerate a substantial part of
central London, creating 7,500 homes, 12,000 jobs and new health, education, cultural and
community facilities as well as 23 acres of green space including the five acre Lost River Park. It
received resolutions to grant planning consent from the London Borough of Hammersmith & Fulham
and the Royal Borough of Kensington & Chelsea in 2012.
Graeme Craig, Director of Commercial Development at TfL, said: “We are pleased to be making
progress on a deal for the development of Earls Court 1 & 2 with Capco which will see the creation of
much needed jobs and homes for London. The revenue generated from the deal will be reinvested
back into London’s transport network to deliver increased and improved services for our customers. It
reflects a new approach we are taking with our extensive property portfolio to work with leading
developers whilst retaining our interest in our properties. This will ensure that we deliver real long-
term value for our fare and taxpayers.”
The agreement announced on 18 July 2013 remains subject to approval by the Boards of Capco and
TfL respectively, which is expected to be sought at a later date upon finalisation of the deal.
Enquiries
Capital & Counties Properties PLC:
Gary Yardley Investment Director +44 (0)20 3214 9189
Public relations:
UK: Michael Sandler/Wendy Baker, Hudson Sandler +44 (0)20 7796 4133
SA: Nicholas Williams/Vanessa Hillary, College Hill Associates +27 (0)11 447 3030
Transport for London:
Public relations:
Sylvia Quagraine
Tel: 02030547182
Email: sylviaquagraine@tfl.gov.uk
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Notes to Editors
About Capital & Counties Properties PLC (Capco):
Capco is one of the largest investment and development property companies that specialises in
central London real estate and is a constituent of the FTSE-250 Index. CAPCO holds 2.8 million
square feet of assets valued at £1.7 billion (as at 31 December 2012) in two landmark London
estates: Covent Garden, which has assets valued at £952 million, including the historic Market
Building and Earls Court & Olympia Group amounting to aggregate property assets of £721 million.
The company is listed on the London Stock Exchange and the JSE, Johannesburg.
www.capitalandcounties.com
Transport for London (TfL):
TfL is responsible for 27 million journeys a day. It operates the Tube network, as well as five per cent
of London's road network, buses, the DLR, Trams, Barclays Cycle Hire, the Emirates Air Line and River
Services.
On 27 March 2013, TfL Board delegated to the Finance and Policy Committee authority to approve
any project or transaction over £100m, from 4 July until 24 September 2013.
The public copy of the Finance and Policy Committee paper can be found at:
http://www.tfl.gov.uk/assets/downloads/corporate/FPC-130718-Part-1-Item09-Earls-Court.pdf
About the Earls Court Masterplan:
The Earls Court Masterplan is one of the largest regeneration projects in London and was approved
in July by the Mayor of London, following the resolutions to grant consent from both the London
Borough of Hammersmith & Fulham and the Royal Borough of Kensington & Chelsea in 2012. The
Masterplan covers 77 acres of land, known as the Earls Court & West Kensington Opportunity Area,
owned by Capital & Counties Properties PLC (“Capco”), Transport for London (“TfL”) and the London
Borough of Hammersmith & Fulham (”LBHF”). The Earls Court Masterplan is 10.1 million square feet
of space and was designed by Sir Terry Farrell who was inspired by the best of London to create
‘Four new Urban Villages and a 21st Century High Street.’ The Masterplan will deliver 7,500 new
homes, 12,000 new jobs as well as new open green space, health facilities, new schools, community
and cultural space and improvements to the transport and infrastructure of the local area. Earls
Court 1 and 2 will be part of the first phase of the Earls Court Opportunity Area with further phases
being brought forward which will incorporate the Hammersmith & Fulham estates and LUL’s Lillie
Bridge Depot if and when it is operationally feasible to do so.
Additional detail:
At present, Capco holds two long-leasehold interests at Earls Court as well as ownership of the
Northern Access Road and the air rights over the West London Line. Earls Court 1 covers an area of
12 acres and is subject to a lease that expires in 2041, and Earls Court 2 covers an area of 8 acres and
is subject to a lease that expires in 2115. TfL has the freehold interest in Earls Court 1 and 2. Under
the Heads of Terms, Capco will surrender its existing leases to TfL as well as the air rights over the
West London Line and the freehold of the Northern Access Road, and TfL will then grant the Joint
Venture a new 999 year lease with development rights over the same land.
Capco is assembling the various underlying land interests across the Earls Court Masterplan area
which includes freehold ownership of Empress State (shortly to be 100% following exchange of
contracts in May to acquire the 50% not already owned); Seagrave Road (50%); the Conditional Land
Sale Agreement which provides a long-dated option to purchase the Gibbs Green and West
Kensington Estates (100%); and the proposed arrangement above with TfL in relation to the
exhibition centres land.
www.myearlscourt.com
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