News Release

International Consortium To Buy London South Bank Regeneration Project From The Carlyle Group For £308 Million

2015-024

Transaction will enable the £1 billion landmark development of Bankside Quarter  

An international consortium, comprising the UK’s Native Land, Singapore’s Temasek and Hotel Properties Limited (HPL), and Malaysia’s Amcorp Properties, has announced the formation of a joint venture, which has exchanged contracts to acquire Sampson House and Ludgate House from global alternative asset manager The Carlyle Group (NASDAQ: CG), for £308 million. The Carlyle Group managed the asset on behalf of its third European fund CEREPIII.

The transaction will result in the creation of the new Bankside Quarter, a 1.4 million sq ft residential, office and retail development, which will further enhance an area undergoing a transformation through a raft of other improvements.

The expanded Tate Modern, the new Blackfriars Station linking the north and south bank of the River Thames and the recently opened Mondrian hotel have already combined to make the area a vibrant new London location.

A planning consent for the redevelopment of the 5.3 acre site, designed by PLP Architecture, was secured by Carlyle in March 2014 and comprises permission for 489 apartments and 288,000 sq ft of offices, as well as retail, leisure and cultural facilities. When completed, the project will comprise five residential buildings and four office buildings.

The development will rise from 13 to 49 storeys and will create new routes reconnecting the eastern and western sides of a railway viaduct where the existing buildings have formed an impermeable barrier through the site since the 1970s.

The planning consent also ensures a payment in lieu of affordable housing of £65 million payable to Southwark Council.

Native Land is appointed as development manager to the consortium.

Alasdair Nicholls, Chief Executive of Native Land, commented on behalf of the consortium: “The development of the Bankside Quarter will set the seal on London’s finest emerging location. By unblocking routes through this strategically important site as well as significantly enhancing the public realm the area will become even more popular for residents, businesses and visitors from across the globe.

“The project will also deliver much needed private and affordable housing in the borough, where there is a shortage of supply.

“The consortium which has been assembled to deliver the project represents the best in international development and funding expertise. We are confident that we can deliver a major new destination for London, adding to the strong foundations already laid in the Bankside area.”

Mark Harris, Managing Director at The Carlyle Group, commented: “Since acquiring these two properties in 2010 Carlyle has successfully laid the foundations for the transformation of this important part of the South Bank area, creating a project which offers a once in a lifetime chance to regenerate a prime, central London site and create a new community while transforming one of London’s most popular riverbank locations. Through forward planning and by utilising our strong asset management capabilities, the team at Carlyle was able to create a new vision for a distressed site which we will now look forward to watching Native Land deliver.

“Ludgate House and Sampson House are the last two properties from the WhiteTower portfolio of six assets we acquired in 2010 and this transaction marks the conclusion of what has been a very successful investment on behalf of our investors.”

Native Land intends to deliver the project in a series of phases, with the first phase including a 49-storey tower comprising 211 apartments fronting the River Thames. The subsequent phase will deliver a Grade A office building, with later phases including the redevelopment of Sampson House, which is currently leased to IBM until 2025 but with a mutual break option in June 2018.

The development’s three tallest towers are designed by PLP as a “family of forms”, with masonry of a warm colour borrowed from adjacent existing buildings and ensuring that the development relates to its surroundings and the river Thames.

The overall site has been identified as an `opportunity area’ in the Mayor of London’s London Plan, and is immediately adjacent to Blackfriars Station’s southern entrance. It also benefits from excellent links to the City of London, the West End, Canary Wharf and the capital’s international transport destinations.

* * * * *

For further information, please contact:

FTI Consulting:                                                                   
+44 (0)20 3727 1000

Kieron Smith – for Native Land
Kieron Smith, kieron.smith@fticonsulting.com

Richard Sunderland / Clare Glynn – for The Carlyle Group
Carlyle@fticonsulting.com

NOTES FOR EDITORS

Native Land
Native Land was established in 2003 and is one of London’s leading mixed use and housing developers, delivering homes for private sale and rental as well as affordable housing, including social rented and shared-ownership accommodation.

Native Land’s current development portfolio of around 1 million sq ft includes: the multi-award winning NEO Bankside, a £400m joint venture with Grosvenor, situated adjacent to Tate Modern, which has also provided 132 mixed-tenure affordable homes across the London Borough of Southwark; Cheyne Terrace, a joint venture with Grosvenor, which has delivered 85,000 sq ft of prime, private residential accommodation in Chelsea together with 12,000 sq ft of social rented housing; Burlington Gate, a 90,000 sq ft gallery and residential development in Mayfair, which will also release £7.4 million for affordable housing and public realm improvements in Westminster; and Campden Hill, another joint venture with Grosvenor which will comprise 72 private apartments within 175,000 sq ft of accommodation and a further 97 affordable homes in the Royal Borough of Kensington and Chelsea.

More information can be found on Native Land at www.native-land.com

Temasek
Incorporated in 1974, Temasek is an investment company based in Singapore, with a S$223 billion portfolio as at 31 March 2014.

Temasek's portfolio covers a broad spectrum of sectors: financial services; transportation, logistics and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Its investment themes reflect Temasek’s perspectives on the long term trends:

  • Transforming Economies;
  • Growing Middle Income Populations;
  • Deepening Comparative Advantages; and
  • Emerging Champions

Temasek has offices in 11 cities around the world, including São Paulo and Mexico City in Latin America; and London and New York, which both opened in 2014. The remaining offices are all in Asia, including China and India.

More information can be found on Temasek at www.temasek.com.sg

Hotel Properties Limited (“HPL”)
Hotel Properties Limited (“ HPL”)  was listed on the Singapore Stock Exchange (now known as the Singapore Exchange Securities Trading Limited) in 1982 and today holds assets worth over US$2 billion.  The principal areas of focus for the group’s business include property development and investment, ownership and management of hotels and the operation of premium leisure and retail businesses.

The HPL Group operates on a global scale with substantial businesses in Asia, Africa, USA and the UK.  It owns over 3,000 hotel rooms worldwide, under some of the most recognisable brands including Four Seasons, Hilton, Holiday Inn and Hard Rock Hotel.

HPL has gained a reputation for building and operating some of the highest quality residential complexes in South East Asia, including Four Season Park, Cuscaden Residence, Tomlinson Heights, Interlace and D’Leedon  in Singapore,  the multiple award-winning 66-storey the Met condominium in Bangkok,  Four Seasons Place apartments in Pudong, Shanghai as well as Canary Riverside apartments in London.

More information can be found on Hotel Properties Limited at www.hotelprop.com

Amcorp
Amcorp Properties Berhad (AMPROP) was listed on the Main Market of Bursa Malaysia Securities Berhad in 1972. AMPROP Group’s core business includes property development, renewable energy and contracting.

AMPROP is an established developer in Malaysia, with a large number of successful completed commercial, retail and residential projects. Its current undertaking in Malaysia includes the asset management of 1 million square feet of integrated commercial and retail projects, a 1,000 acre multi-use township development and an exclusive boutique bungalow development on approximately 400 acres.

AMPROP has been actively involved in prime central London property investment.  Since its maiden venture at 40/50 Eastbourne Terrace, Paddington in 2009, it has made various other acquisitions and investments including 99 Baker Street, 101 Lexham Garden in Kensington, 4B Merchant Square in Paddington, Pavilion D of NEO Bankside in Southwark and Burlington Gate in Mayfair.

More information on AMPROP can be found at www.amcorpproperties.com

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $194 billion of assets under management across 128 funds and 142 fund of funds vehicles as of December 31, 2014. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 40 offices across six continents.

Web: www.carlyle.com
Videos: http://www.carlyle.com/news-room/corporate-videos_new
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary 

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