Delancey saves Elephant & Castle shopping centre scheme

Aaron Morby 12 years ago
Share

Property developer Delancey is set to rebuild the Elephant & Castle shopping centre after buying the iconic south London building from St Modwen.

St Modwen, which owns the site through its KPI joint venture with Salhia Real Estate, said today it had sold the complex for £80m.

The joint venture was under mounting pressure from Southwark Council to get the redevelopment plans moving and faced a possible compulsory purchase order from the council.

Dalancey, alongside its joint venture partner APG, will now look at plans to rebuild the dilapidated shopping complex, which forms the heart of the £1.5bn redevelopment scheme being driven by Lend Lease.

In a similar move, Delancey rescued the stalled residential scheme, now known as Tribeca Square, between the Heygate Estate and the shopping centre, when it bought the site back in 2011.

The developer started work on the Tribeca residential scheme last month. This project (pictured below) includes towers of 24, 18 and 16 storeys and will include 262 homes, a 272-bed student residence, a large Sainsbury’s supermarket and a four-screen cinema.

Tribeca Square

Jamie Ritblat, CEO of Delancey, said: “We are delighted to be continuing the delivery of a significant residential investment strategy in Elephant and Castle with such a high calibre partner as APG; particularly at a time, when the affordability of housing in London is an increasing concern.

“Combining an exceptionally well-connected Zone 1 location with Zone 3 pricing, Elephant & Castle is one of Europe’s foremost regeneration projects, and represents a hugely exciting project for us to be moving forward.”

Bill Oliver, Chief Executive, St. Modwen, said: “For the last 11 years, we have significantly increased the value and potential of the Elephant & Castle Shopping Centre through strong asset management initiatives and we had also looked forward to redeveloping the Centre to drive a wider scale regeneration of the area.

“However, both St. Modwen and Salhia believe that the price offered fully reflects the potential of the scheme and provides certainty of exit, while crystallising a significant profit for our shareholders.

Latest news

Taylor Wimpey fined £800k after apprentice falls down stairwell

Teenage brickie injured after falling with pile of concrete blocks
49 minutes ago

Construction growth of 0.9% bucks wider shrinking economy

Construction output climbs for third straight month
5 hours ago

Crest Nicholson returns to profit

House builder back in the black after huge fire safety provisions last year
5 hours ago

JN Bentley profit surges as revenue tops £500m

Surging water work and plant investment underpin £19m profit
5 hours ago

Willmott Dixon bags £49m East London business school job

Builder secures second job in a year for Queen Mary University
5 hours ago

Another extension for competition probe into house builders

Spotlight will stay on seven housing giants for another few months
22 hours ago

Strike ballot for 1,500 Sellafield construction workers

36 contractors working on nuclear clean-up could be hit
5 hours ago

WSP to buy Ricardo

Consulting giant to add another 2,700 staff
1 day ago

Infrastructure and major projects boost profits at Vp

Specialist construction, water and transmission sectors are star performers
1 day ago

TClarke jumps to top of M&E firms rankings

Growth in data centres and commercial refits creates optimism for year ahead
1 day ago

JRL plans Sutton 12-storey office to co-living revamp

St Nicholas House to be stripped back and reworked into high-rise homes
1 day ago

Plan to double affordable homes spend at centre of spending review

£39bn will be injected into social housing over 10-years
1 day ago

Lindum lands £44m automation centre contract

Construction to start this summer on Sutton-in-Ashfield site
1 day ago

Esh seals £160m sewer repairs deal with Northumbrian Water

Eight-year deal caps 25-year partnership with Northumbrian
2 days ago

Rolls-Royce wins race to build UK’s first small modular reactor

BAM Nuttall, Laing O’Rourke and Atkins are supporting Rolls-Royce-led consortium
2 days ago

Plans in for £100m Digbeth regeneration scheme

Developer Hartwell plans mixed-use project at former ironworks site
2 days ago

Founder retakes the reins in Reds10 leadership shake-up

Chief exec steps aside as founder returns to steer growth push
2 days ago

Sizewell C powers up as Government commits £14bn funding

Around 70% of contracts for 3,500 British suppliers as construction to gear up
2 days ago

Plans in for 3,000-capacity TraffordCity ice arena

Second ice rink for Trafford as Peel pushes leisure-led regeneration
2 days ago

Walker Modular wins pods deal at £90m Greystar site

Latest package win with McAleer & Rushe on Birmingham student tower
2 days ago

Pre-pack deal rescues online building materials firm

Lords acquires £71m-turnover CMO from administrators for £1.8m
3 days ago

Russell WBHO lands £25m Oldham industrial deal

Next phase of scheme will deliver 13 distribution and manufacturing units
2 days ago

Laing O’Rourke wins £920m animal health super-lab job

Flagship lab forms centrepiece of £2.8bn DEFRA animal diseases complex rebuild
3 days ago

Scotland eyes £3bn cladding fix as levy targets house builders

Ministers to raise £30m a year from developers to fund building safety blitz
3 days ago

Amey profit jumps 31% as £7.8bn pipeline fuels growth plans

New frameworks, rising margins and global push drive Amey turnaround
3 days ago

Green light for stalled London resi tower

Developer Regal wins approval for 100 Avenue road scheme
3 days ago

Home Office steps-up immigration raids on construction sites

36 arrests made in one site raid
3 days ago

Former Hewlett civils firm fails amid director blame game

£17m turnover CORE Special Projects ceases trading after 10 years
6 days ago

Problem job sinks Mace construction profits

Consultancy arm now making more money than larger construction division
1 week ago

Acciona heads May contracts league with water job

Mace displaces Sir Robert McAlpine at the top of the annualised rankings
6 days ago

Contractor services