Savills : Government stake in London's King's Cross central development is sold

Acting on behalf of the UK Government, investment bank Lazard, jointly with international real estate advisor Savills, has agreed the £371 million sale of a 36.5% stake in the iconic King's Cross redevelopment in London to AustralianSuper.

The significant shareholding in Europe's largest city centre development encompasses eight million sq ft of homes, offices, schools, restaurants and shops. The other major shareholder is Argent King's Cross (the estate's asset manager working alongside Hermes Investment Management, 32.5%).

Stephen Down, Savills head of Central London investment, adds: 'The opportunity to gain a shareholding in a new London Estate and exposure to one of Europe's most important city centre regeneration projects captured global interest and a competitive bidding process before the final sale was agreed.'

King's Cross is a critically acclaimed 67-acre development across 50 new and refurbished buildings with 26 acres of public realm, including 10 new parks and squares, 20 new streets and 3 new bridges across the Regent's Canal; it will have close to 2,000 homes of a variety of tenures and types. Tenants include Google, Louis Vuitton, Camden Council, Autotrader and ArtFund alongside Central Saint Martins, University of the Arts London. The development is home to two new schools: Frank Barnes School for Deaf Children and the primary school, King's Cross Academy.

The site is adjacent to King's Cross Station, which services 6 London Underground lines, and St Pancras Station, from where Eurostar services connect to Paris and Brussels.

The Government's stake in King's Cross is held by its wholly-owned subsidiary, LCR, which has overseen the development at King's Cross on behalf of Government for 20 years.

AustralianSuper was advised by TH Real Estate.