Development and investment team assembled to back one of the South East’s most important regeneration projects.

Benson Elliot Capital Management ("Benson Elliot"), the leading private equity real estate firm, and Stanhope plc ("Stanhope"), one of the UK's most experienced developers, have acquired a majority interest in the company established by Sackville Properties for the landmark Station Hill re-development in Reading.  Alongside the £850 million upgrading and enhancement programme at Reading Station, the first phase of which will be completed in 2013, the Station Hill development is the centrepiece of plans to renew the heart of Reading, and reinforce the town as the capital of the Thames Valley. 

Sackville Properties, under the leadership of Chairman Sir John Madejski, initiated the Station Hill project, acquiring the main portion of the site from Land Securities in 2005. Sackville extended the site through further land acquisitions before securing a resolution to grant planning consent for a 1.7 million square foot mixed-use project in 2009. More recently, Sackville has been looking for a funding and development partner to secure the resources and experience required to bring forward the re-development of the site.

Stanhope, led by David Camp, is recognised as one of the most experienced developers of large-scale urban projects in the UK, with a track record encompassing landmark projects such as Broadgate and Chiswick Park. Benson Elliot founder Marc Mogull has led the funding of urban regeneration projects across Europe during the past twenty years, and is the UK Chairman of the Urban Land Institute, the pre-eminent global land-use organisation. The Station Hill transaction represents the first investment for the €500 million fund, Benson Elliot Real Estate Partners III. 

Sir John Madejski, Chairman of Sackville, said: "I am delighted that the formation of this exciting partnership, and the injection of new capital at a time of financial constraint, will give renewed impetus to the re-development of this key site in the heart of Reading. It has long been my ambition to see the epicentre of Reading brought back to life; it is without doubt the most important development in the South East of England."

David Camp, Chief Executive Officer at Stanhope, added: "There is a tremendous opportunity here to make a meaningful and important contribution to the resurgence of Reading. The Sackville team has assembled a first class site, and we are looking forward to building on its work to create a new superbly located and connected place in which to live and to work."

Marc Mogull, Managing Partner at Benson Elliot, commented: "This is a significant urban regeneration scheme, and Benson Elliot is excited to be part of it. I look forward to working closely with Reading Borough Council, Sir John and the talented teams at Stanhope and Sackville to see it realised."

Cllr Andrew Cumpsty, Leader of Reading Borough Council said: "I am extremely pleased to learn of the announcement of this joint venture. It is an important milestone in this critical development project for the town. Station Hill is a key location in the town centre and its development, along with the investment the Council has secured in the area around the station, will transform one of the major gateways into Reading, providing a real boost to our already powerful local economy and supporting the priority we give to civic aspiration".

Strutt & Parker acted for Sackville Properties on the transaction whilst Savills acted for Benson Elliot and Stanhope.