Benson Elliot, the
Sir John Madejski’s Sackville Developments has sold a majority stake in the long-mooted development for a “much smaller sum” than the £400m development value.
The transaction is the first investment for the €500m Benson Elliot Real Estate Partners III fund.
Marc Mogull, managing partner at Benson Elliot, said: “This is a significant urban regeneration scheme, and Benson Elliot is excited to be part of it. I look forward to working closely with Reading Borough Council, Sir John and the talented teams at Stanhope and Sackville to see it realised.”
Sackville, which bought the site from Land Securities in 2005, has been seeking a joint venture partner to help to bring forward the project since 2007.
The search was stepped up following the breach of its bank finance agreement on the project with Lloyds Banking Group in November of 2009.
Stanhope was selected as development partner in September of last year.
Today’s deal will enable Sackville to pay back its debt. Sackville will retain a minority stake and a share in future profits.
Station Hill comprises 870,000 sq ft of offices, 650 flats and 243,000 sq ft of retail and leisure.
Revised plans gained consent in September 2009 at appeal after a previous scheme was thrown out by Communities secretary Hazel Blears in May 2008.
paul.norman@estatesgazette.com
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