Font Size

- Aa +

Sun 19 Dec 2010 11:12 AM

Font Size

- Aa +

Qatari Diar throws in bid for London’s Olympic village

Qatar's state-owned real estate arm in bid to buy around half of 2,800 homes and adjacent plot of land

Qatari Diar throws in bid for London’s Olympic village
Qatari Diar has bid to buy and manage around half of the new homes in Londons Olympic Village

Qatari
Diar, the real estate arm of Qatar’s sovereign wealth fund, has joined the race
to buy and manage half of the Olympic Village in London.

The
state-owned firm plans to submit a joint bid with British property developer
Delancey to buy up around half of the 2,800 homes at the village, together with
an adjacent plot of land with the potential for further 2,000 – 2,500 new
homes.

The
pair will compete against eight other bid groups for the contract, overseen by
the Olympic Delivery Authority (ODA), which would require the firms to deliver
2,818 new homes for East London after the 2012 Games.

About
1,300 of the new homes have been bought by Triathlon Homes for £270m (about
$419m) and are designated to become affordable housing.

The
ODA owns the remaining 1,439 homes which will become private housing, plus six
future development plots in the Village site.

It
expects to earn around £500m ($775m) from the deal.

ODA
chief executive David Higgins told reporters: “The quality of this shortlist is
a vote of confidence in the quality of the Olympic Village. Securing a
shortlist with many of the leading property investors and managers both in the
UK and around the world takes us an important step towards ensuring the Village
becomes one of the strongest legacies from the Games.”

If successful, the Village would become the latest asset in Qatar's London property portfolio. The gas-rich Gulf state already own assets such as London Bridge Tower, Chelsea Barracks and the US embassy building in Grosvenor Square.

The
full bid list includes Dorrington & Pinnacle Capital; Galliard Homes; Grainger
plc & Moorfield Group; Aviva plc & J.P. Morgan and David Wilson &
Sir Robert McAlpine.

The shortlisted bidders will submit formal offers next spring.