St George has pulled out of the joint venture it formed with fellow developer Argent Group to redevelop the King’s Cross area in London, providing 1800 homes.

The venture will now be fully controlled by Argent and will change its name from Argent St George to Argent (Kings Cross).

Tony Carey, managing director of St George, said: “The commercial emphasis of this development no longer fits with the group’s strategy.

“In the spirit of long-standing relations between Argent and St George, Argent has purchased our interest.”

Roger Madelin, chief executive of Argent Group, said: “We are very committed to the King’s Cross scheme and are happy to increase our stake.”

Both declined to say how much Argent paid for St George’s stake .

Argent St George had previously expressed concerns over the planning gain agreement it was negotiating with Camden council, in which it will be guaranteed planning permission in return for providing housing or other community facilities.

Argent said it would be unable to provide 50% affordable housing as well as £120m of infrastructure work for the development (HT 21 November 2003, page 8).

However, a spokesman for Argent stressed that 50% affordable housing would still be provided in the development.

He said St George’s decision to pull out of the scheme was not due to an argument over these figures.

Source

Housing Today