Lincoln MGT, a joint venture between Lincoln Property Company and MGT Investment Management backed by Baupost, has bought the six-and-a-half-acre Station Hill development site – one of the South East’s largest development opportunities – from Sackville Developments Reading (SDRL), a joint venture between Stanhope and Benson Elliot.
The Station Hill site is situated directly opposite the main entrance to Reading Station, which has recently undergone a major redevelopment and is at the start of Crossrail. The site has been the focus of major commercial development proposals for many years but it is understood that the joint venture will shift its focus to residential.
The site already has outline planning permission and an agreed Section 106 for a combined office and residential development with a GDV exceeding £750 million.
Lincoln MGT is a strategic joint venture between the US developer Lincoln Property Company and UK based MGT Investment Management and it is understood to have paid around £70m for the opportunity.
The joint venture said in a statement it combines the commercial and residential development experience and skills of Lincoln Property Company, which is one of the largest full-service real estate companies in the United States, with the pan-European investment experience and strategic focus of MGT Investment Management.
Henry Morris, managing director at MGT Investment Management, said: “We are delighted to have secured this outstanding mixed-use development site, which is the first investment for Lincoln MGT in the UK. The Lincoln MGT partnership brings complementary skill sets to the joint-venture with MGT leading on acquisition and investment management, and Lincoln Property Company leading on development, construction, leasing and property management.”
Troy Javaher, managing director of the European operations at Lincoln Property Company, said: “The site occupies an incredible location next to Reading station, which has benefitted from a massive infrastructure improvement in recent years with the station’s redevelopment and the expected delivery of Crossrail’s Elizabeth line in December 2019. We understand the strategic importance of this development to Reading’s continued evolution and we look forward to working with the council and stakeholders to bring forward an outstanding mixed-use development in the near future.”
David Camp, chief executive of Stanhope plc, said: “Sackville Developments Reading Ltd (SDRL) is pleased to confirm that it has sold its interest in the Station Hill development to Lincoln MGT. SDRL has prepared the site for development, including demolition and other works and the creation of a successful temporary events space and the Biscuit Tin coffee shop for the community. We have worked very effectively and closely with Reading Borough Council over many years to ensure that the redevelopment brings forward the maximum benefits of regeneration to the area around the station and we are delighted that it is in safe hands with the new owners to deliver this fantastic scheme for Reading.”
Lincoln MGT was advised by LSH and Knight Frank. The vendor was represented by CBRE.