In 2013, Capco entered into the Conditional Land Sale Agreement (“CLSA”), a binding agreement with London Borough of Hammersmith and Fulham (“the Council”) in relation to the West Kensington and Gibbs Green Estates (and other land) (“The Estates”).
The CLSA was approved by the Secretary of State on 18 April 2013.
In November 2013 the Group exercised its option under the CLSA, for the purchase of the Estates.
The overall consideration payable is expected to be £105 million cash plus the planning requirement to provide up to 760 replacement homes within the Earls Court development area. The Council will be responsible for providing details of the required new homes to Capco by the mechanism of a Housing Needs Assessment. To date, Capco has paid £75 million of the £105 million cash consideration payable to LBHF including three of the five annual instalments of £15 million.
Capco is entitled to draw down the land under the CLSA in phases by following a prescribed land drawdown process. A phase will not be transferred to Capco until the Council has secured vacant possession and Capco has provided the replacement homes to enable the residents of the relevant phase to be rehoused.