LONDON-Hong Kong-based Kwok Family Interests has agreed to provide $101.8 million to locally based Capital & Counties Properties LLC to start the $465 million Seagrave Road project in Earls Court. The proposed one-million-square-foot multifamily project is expected to feature 808 new home units.
Conditional on local planning approval for the project, the two companies will form a 50-50 joint venture to own and build the 7.5-acre site, which is within the 2012 Olympics development zone. The land is currently a parking lot.
According to a Capco statement, the first phase of the project is currently valued at about $203.6 million, but is expected to cost more than twice that to finish. Capco said it will use the funds provided by Kwok to help pay for general corporate purposes, including the additional phases of this project. Both companies will split the future phase costs in half. Kwok is a majority shareholder in Sun Hung Kai Properties Ltd.
According to a Web-posted statement by the community-led Earls Court Project Team, the JV is an important milestone to create new homes and jobs for the area. The local government council is expected to reach a decision about the development in the coming months, as the site cannot be built on until the summer.
Ian Hawksworth, CEO of Capco, said in his company’s statement that the venture represents a major vote of confidence in the London property market. “This joint venture will enable us to participate in the next stage of the Seagrave Road project, which will begin the transformation of the area, creating hundreds of new homes and jobs,” he said.
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