JOINT VENTURE FOR THE DOME

Greenwich, 18th December 2001

A proposed joint venture, attracting £4bn of private investment, between a top international consortium and English Partnerships, was announced today by Regeneration Minister Lord Falconer.

Meridian Delta Limited (MDL) - an international consortium that includes , , and the US giant - will enter into an exclusive relationship with . They signed indicative Heads of Terms today.

Lord Falconer said: "I am pleased to announce the next stage towards securing an exciting and sustainable future for the Dome and the surrounding area.

"This deal will bring a world class entertainment arena to London, thousands of new homes on the Peninsula, and extensive community and commercial facilities. It will also importantly bring hundreds of millions of pounds into the public coffers."

Anschutz will provide a 20,000 seat multi events arena inside the Dome. Together with English Partnerships MDL will regenerate 76 hectares of land (189 acres) for mixed commercial and residential use, with public open space and parkland.

Lord Falconer said: "Negotiations are not finished. But there is a clear commercial interest for all concerned to finalise this package. On conclusion, we will have enhanced the Dome's status as a truly iconic and instantly recognisable structure. The deal is expected to bring over £4 billion of investment to the area. This includes over £200m in the Dome itself."

The consortium will take on full responsibility for the Dome. The arena will be used for major concerts and will be fitted out to Olympic standard for sports use. Other urban entertainment facilities will be provided in and around the Dome.

Lord Falconer continued: "We have learned some hard lessons from the past. This deal, though still with a long way to go, looks at the Dome and surrounding area in a new and exciting way. World-class players will bring entertainment to the Dome and wholesale regeneration to a site that was once a disused wasteland."

MDL and English Partnerships will develop a new masterplan for the land on the Peninsula in their joint ownership. This land will then be developed over a period of about 20 years. All parties will share in the financial proceeds. Details have still to be finalised.

This brings the market testing, which was started in February, to a close.

English Partnerships will now negotiate the detailed terms of the transaction with MDL. This is expected to take several months. While the detailed negotiations continue, EP and MDL will work closely with the London Borough of Greenwich, the Mayor's office and the Greenwich Peninsula Partnership, to develop the proposals for the Dome and the Peninsula, to respond to local concerns and requirements and to start preparations for taking the proposals through the planning process.

NOTES

1. Anschutz Entertainment Group is part of the Anschutz Corporation, one of the largest private companies in the United States. They have worldwide sporting and entertainment interests, including a number of major arenas.
2. Lend Lease has a market capitalisation of £1.7bn. They developed the Newington Olympic Village in Sydney, and have extensive experience of regenerative mixed use projects. These include commercial/residential waterfront development in Melbourne, and Europe's largest retail and leisure destination at Bluewater, Kent.
3. Quintain own 5.6 ha of land next to the Dome site and have options in relation to a further 1.9 ha elsewhere on the Peninsula.
4. English Partnerships is the national catalyst for property led regeneration and development. English Partnerships works with central and local government, the Regional Development Agencies (RDAs), the private sector, New Town local authorities and other partners to bring about sustainable economic regeneration and development.
5. A competition to find a long-term, sustainable, use for the Dome was first launched in March 1999. In January 2000, six proposals were shortlisted, and in May 2000 a final shortlist of two - Dome Europe (Nomura) and Legacy plc - was announced. On 27 July 2000, Dome Europe was announced as preferred bidder, but they withdrew from the competition on 11 September. Discussions were reopened with Legacy plc, who were selected as preferred bidder on 20 November 2000. Legacy failed to meet the requirements that were set them, and their preferred bidder status was withdrawn on 15 February. The formal competition was terminated at the same time.
6. Since 15 February, the Government team - led by English Partnerships with professional advisors Jones Lang Lasalle and Berwin Leighton Paisner - has been testing the market for long term interest in the Dome and land on the Greenwich Peninsula. This led to a number of discussions with serious contenders, from which the MDL consortium has been selected as development partner. Selection was based on assessment against three criteria: providing a worthwhile and sustainable future for the Dome; value for money; and deliverability.
7. Negotiations will continue between MDL and English Partnerships, before exchange of contracts. The deal is complex and the detailed negotiations are expected to take several months. The three criteria above will continue to be key during those negotiations.