Lincoln MGT, a joint venture between Lincoln Property Company and MGT Investment Management, has acquired Station Hill, a six-and-a-half-acre development site in central Reading from Sackville Developments Reading Ltd, a joint venture between Stanhope and Benson Elliot.
The Station Hill site is situated directly in front of the main entrance to Reading Railway Station, which has recently undergone a major redevelopment and enhancement in advance of the opening of Crossrail in 2019. The site, which already has outline planning permission and an agreed Section 106 for a combined office and residential development, is one of the largest development schemes outside of London and has a GDV exceeding £750m.
Lincoln MGT is a strategic joint-venture between the US developer Lincoln Property Company and UK based MGT Investment Management. The joint venture combines the commercial and residential development experience and operating skills of Lincoln Property Company, which is one of the largest full-service real estate companies and the second largest manager of multi-family / PRS units in the United States, with the pan-European investment experience and strategic focus of MGT Investment Management.
Henry Morris, Manging 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 exceptional 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 infill development to Reading’s continued economic growth, and we look forward to working with the council, the local community and other stakeholders to bring forward an outstanding mixed-use development.”
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.”
James Jakeman, Partner, Benson Elliot, said: “Benson Elliot and Stanhope have worked closely together over the last number of years to deliver one of the south east’s most strategically important and high-profile development opportunities. It has been an exciting undertaking to be involved with and having accomplished our objectives against the backdrop of a strengthening local market and beneficial large scale infrastructure projects, we are now in a position to hand the site over for its next phase and to crystallise value on behalf of our investors.”