King's Cross

Covering a vast area and implementing a mixed-development strategy, the project dedicated more than half of the total available building surface to offices (57%), followed by more than one fourth of the area allocated for residential buildings (29%). Given the obligations imposed from the developer exaction, 40% of the almost 2,000 new residential units have been reserved for social housing. The remaining area is divided between commercial spaces (6%) and recreational, cultural and educational services (8%).

To restore economic activities, the redevelopment project aims to increase the real estate value of renting, which was very low compared to the London average. The initiative had a significant impact on employment opportunities, increasing the number of job positions from 8,000 to almost 27,000 in 2019. The regenerated neighborhood and economic activity are projected to bring a significant GDP growth given by attracting workers, business opportunities and international organizations – e.g. Google, Meta, Universal Music, Havas, Auto Trader. In general, the project had a major impact on the local economic development of the area, which had been widely underperformed before the renovation took place.

The redevelopment project brought a meaningful environmental impact through the reduction of CO2 emissions by 19,729 tons, mainly achieved by employing energy from renewable sources and the creation of green areas. At the completion, the public green areas will cover at least 40% of the total intervention surface, significantly contributing to the urban ecosystem and biodiversity. The project will also compensate the 174,145 tons of CO2 emissions produced until 2022 through carbon offsetting projects in Kenya and Mongolia.

The redevelopment of the neighborhood targeted social equity and inclusiveness of the residential and working population of the neighborhood. The initiative led to the construction of new residential units, the recruitment center KX Recruit and the training center King’s Cross Construction Skills Center. Given the obligations imposed from the developer exaction of Section 106, 40% of the almost 2,000 new residential units must be reserved for social housing. The project also increased the quality and availability of public services – e.g. recreational activities, education centers, student housing – and open public spaces – e.g. squares, green areas, pedestrian areas. The redevelopment also renewed the existing public transportation and railway systems, a central activity for the area. These renovation activities significantly increased the overall attractiveness of the neighborhood, which hosted 163 events and attracted around 7 million visitors in 2015 and 2016 only. In addition, the initiative contributed to significantly reducing the crime rate in the neighborhood, which was very high before the renovation took place.

The King’s Cross project received the Carbon Neutral Certification in November 2021 from Natural Capital Partners, now Climate Impact Partners, through the CarbonNeutral Protocol. The CarbonNeutral Development certificate is applied to all the buildings under the King’s Cross Central Limited Partnership ownership, thanks to the exclusive employment of renewable energy. The project also received several BREEAM certifications, with three offices building receiving the BREEAM Outstanding rating. Two other offices, the Sports Hall, the community building, and a multi-residential building received the Excellent rating, while a mixed retail and residential building and the Travelodge Hotel received the Pass rating.

The project had been implemented through a Public-Private Partnership, the King’s Cross Central Limited Partnership, founded by the London & Continental Railways Limited (public), DHL Supply Chain and Argent LLP (private companies). In 2016 DHL and LCR sold their share in the King’s Cross Central Limited Partnership to AustralianSuper.

The project is developed through a public-private partnership employing several different financing instruments, both from private and public financing sources. Firstly, the King’s Cross Central Limited Partnership acquired the King’s Cross project land from the Department of Transport, which sold the land as a partnership contribution to the company in exchange for 50% of the total final revenues generated. To finance the structural projects in the area covering new streets, district heating, squares, and the river stream renovation, the King’s Cross Central Limited Partnership initially turned to private equity investments. The company also received USD 55 million in direct government grants from Homes England (formerly UK Homes and Communities Agency) to finance social housing. The major financing part came from medium-term loans from credit institutions, assessed to be around USD 2.2 bn. Finally, a smaller part of financing resources came from recycled revenues, which were reinvested to develop the following phases of the project. These revenues were generated from the sale, rent and lease of part of the intervention area to third-party developers, and from the estate service charge imposed on the neighborhood residents for the maintenance and event organization in the area. The project had also been financed through a developer exaction instrument of the Section 106 Agreements, Planning Agreements. This instrument imposed to King’s Cross Central Limited Partnership different obligations to receive the construction authorizations and a direct funding of USD 2.75 mln.

SUR Lab Bocconi (2023). Deliverable ATM 2.

King’s Cross official website. Accessed on 27/03/2024. Available here.

Argent LLP. King’s Cross Project. Accessed on 27/03/2024. Available here.

The Guardian (2018). The £3bn rebirth of King's Cross: dictator chic and pie-in-the-sky penthouses. Accessed on 27/03/2024. Available here.

The CarbonNeutral Protocol, Climate Impact Partners. Available here.

Image from King's Cross Central Limited Partnership, retrieved here.