Ballymore Group is to develop a €2.8 billion London residential development with joint venture partner Eco World. The projects were previously in the sole ownership of Ballymore.
The deal will see EW Investment take a 75pc stake in a newly established joint venture company called Eco World – Ballymore Holding Company Limited with Ballymore holding a 25pc stake. Eco World-Ballymore will then acquire the three developments from Ballymore for a total of €547m. In addition to retaining its 25pc equity stake, Ballymore will manage the developments going forward.
The assets sold to the new JV are made up of large-scale residential developments at waterside locations at Arrowhead Quay in Canary Wharf, Phase II of London City Island on the Leamouth Peninsula and Phase II of Embassy Gardens in Nine Elms. All three projects are expected to be ready for sales launch in 2015.
In total the developments have a gross development value (GDV) of around €2.8bn and will deliver around 2,800 new residential units and 250,000 sq ft of commercial, leisure and office space.
“This is a significant deal for Ballymore, not only due to the substantial proceeds it will generate for this firm, but also in terms of providing a successful template for how projects such as these can be developed jointly in the future,” said Ballymore chairman and group CEO, Sean Mulryan.
“In EW Investment we have a great partner with substantial property experience, backed by individuals who were responsible for leading the visionary plans for the redevelopment of Battersea Power Station. Together we will be bringing to market three outstanding residential property developments that provide diversity in both location and price point and which currently represent one of the largest such opportunities in London.”
Ballymore also owns and manages a portfolio of developments across London with approximately 3,000 units currently under construction and a further 8,000 units in its land bank in various stages of the planning process. The company is also involved in a number of developments in Ireland. Together with Oxley Holdings, it is developing around 650,000 sq ft of office space and 300 homes beside the new Central Bank of Ireland HQ on North Wall Quay in Central Dublin.