Property News - Chelsfield considers CGI link-up for White City site

Chelsfield has confirmed that German open-ended fund CGI is interested in financing development of the£1.5 billion White City centre near Shepherds Bush.

The site comprises 1 million sq ft (92,900 sq m) of retail space, including two department stores, and 200,000 sq ft (18,580 sq m) of leisure space.

Chelsfield managing director Nigel Hugill said: 'CGI's proposal was one of a number, but any definitive conclusion is some way off.'

CGI wants to retain Chelsfield solely as a development partner and plans to inject an estimated£400 million of equity to finance the White City development.

Chelsfield, however, is looking for a 50:50 partnership, with the fund contributing up to£250 million.

Such an option is expected to attract attention from a range of property players, including British Land, Land Securities, Legal & General and Hammerson.

Meanwhile, Chelsfield is considering a potential£1 billion management buyout led by chairman Elliott Bernerd, the outcome of which could be crucial in determining the financing option that Chelsfield adopts for White City.

If the company goes private, it will be able to maintain a hold on the Shepherds Bush site. However, if the business remains public, Chelsfield could lose ownership of the biggest regeneration project in London.

- Former managing director of Bovis Lend Lease Europe John Anderson is joining Chelsfield as construction director. He will relinquish his present job as director of Land Securities Properties, but will retain a consulting role within Land Securities.