The draft CLSA details the basis on which a development may be taken forward.

Under the draft CLSA, Capco would be entitled to acquire the Council's 22 acres of land in the Opportunity Area for a total cash consideration of £105 million, plus reprovision (as part of a future development) of the 760 homes currently on the estates, which reflects the prevailing residential property pricing on that part of the Opportunity Area.

The cash consideration would be payable as follows: in addition to the GBP 15 million paid in July 2011 at time of entering into the Exclusivity Agreement with LBHF, Capco would initially acquire the 11 Farm Lane and Gibbs Green School sites for £15 million, and have the option exercisable until 2017 to acquire LBHF's remaining land in a series of installments totaling GBP 75 million.

Capco said in a recent statement that it 'noted' the report, which includes details of the process that the Council has undertaken in considering the potential inclusion of the West Kensington and Gibbs Green estates in the wider regeneration of the area, and a summary of the draft terms and conditions of a potential Conditional Land Sale Agreement (CLSA) based on the current status of the negotiations between LBHF and Capco.

Capco noted that at this stage, no transaction has been agreed between the parties and there is no certainty of a transaction being concluded. A further announcement will be made if appropriate.

"We welcome the publication of this report on the CLSA. It shows good progress is being made in moving towards an agreement on the inclusion of the Council's land in the Earls Court development, which we have always believed would be of enormous benefit to London, the two Boroughs and the local community," said Gary Yardley, Investment Director of Capco.

Publisher: eProp
Source: Capco