Lend Lease and Quintain announce sale of shares in Meridian Delta Dome Ltd
Lend Lease Europe Limited and Quintain Estates & Development plc announce the sale of the share capital in their joint venture Meridian Delta Dome Limited (MDDL) to Trinity College Cambridge for £24 million. They continue to own and manage the regeneration of the surrounding 150 acres through the Greenwich Peninsula Regeneration Ltd (GPRL) joint venture.
MDDL has the benefit of a 999 year lease of the land on which the former Millennium Dome sits, together with the surrounding land. By purchasing MDDL, Trinity College will also have the benefit of the rental income paid by AEG via its under-lease of The O2 Arena. This rental income is linked to ticket sales and in the last calendar year this amounted to £1.5m.
AEG invested £350m in transforming the Millennium Dome into The O2. The sale of MDDL does not affect AEG’s lease or their continued operation of The O2, which has the highest ticket sales of any venue in the world.
Rory Landman, Senior Bursar of Trinity College said:
“The College is very pleased to have had the opportunity to make an investment in the site of The O2 with its position in London’s largest regeneration project. The purchase of the site fits well with the long term investment strategy of the College. The long term income stream from this and Trinity’s other property investments helps secure the future of world-class education and research at Trinity College and in the University of Cambridge. AEG holds a long lease of the site and it will therefore be business as usual for the Arena, with AEG Europe continuing to run all events and facilities.”
Lend Lease and Quintain formed MDDL to hold the 999 year reversionary lease of the Millennium Dome in 2002, when they also acquired the right to develop the wider scheme at Greenwich Peninsula. They are now transforming the Peninsula into a 14.1m sq ft new district for London comprising commercial, academic, retail and residential buildings. With The O2 now an international success, the objectives of the
original acquisition have been achieved and the proceeds from the disposal will unlock funds that can be invested by GPRL in the further development of Greenwich Peninsula.
Nick Shattock, Deputy Chief Executive of Quintain, said:
“In 2002 we took on the remains of the Millennium Dome, complete with its damaged reputation and lack of surrounding attractions. Seven years on, this is now the most iconic and popular entertainment venue in the world, attracting 8 million people a year and featuring the biggest names in music and sport. The joint venture has achieved its objective of placemaking and the disposal of these shares is a pragmatic move to unlock funds that can be re-invested in the further development of Greenwich Peninsula.”
Dan Labbad, Chief Executive Officer of Lend Lease Europe Limited, said:
“Our objective with the Dome was to create the kind of value that would help to fund the regeneration of the surrounding area, and this has been achieved. The money released by this disposal will move the development of the surrounding regeneration scheme forward, building on the success of the recently opened office development and re-location of Ravensbourne College to the Peninsula.”
David Campbell, Chief Executive of AEG Europe, said:
"AEG Europe has worked hard for the last two years to turn The O2 into a London landmark and world-renowned entertainment venue. We look forward to welcoming Trinity College, Cambridge as our new landlord and the use of the funds released by the disposal to further the regeneration of the Peninsula."
