St Modwen JV sells Nine Elms Square to China's Wanda

St Modwen Properties expects to receive £190m from the sale of the Nine Elms Square in Battersea, London after it was sold to Chinese buyers on Wednesday.

Nine Elms Square was sold by St Modwen's VSM 50/50 joint venture with Vinci for a total £470m to Wanda Commercial Properties of Hong Kong, a subsidiary Chinese giant Dalian Wanda.

Completion of the sale is expected to occur later in the summer, following demolition of the former New Covent Garden flower market.

St Modwen said £70m of its share in the proceeds will be held in a restricted development account to fund its share of future obligations in respect of completion of 500,000 square feet of new purpose-built market facilities and associated infrastructure.

The remainder will be used by St Modwen to reduce debt and fund ongoing development activity.

St Modwen said the sale price was in line with book value, which includes a full provision for its share of future market construction obligations.

Chief executive Mark Allan said the sale was an "important milestone", that as well as funding a new purpose-built market, "crystallises a significant element of the value we have been able to create on this complex, inner London development site".