THE Government has started the sale of its one-third stake in the former railway lands around King's Cross station in London. The 27-hectare site is being used for a number of high-profile redevelopments, which include a controversial and currently delayed headquarters building for the internet services provider Google.

The Government said the transaction would be a 'multi-million pound deal'. The land was once used for a locomotive depot and a maze of sidings, but it has not been needed for railway purposes for many years.

Transport minister Robert Goodwill said: "By selling the government’s shares in King's Cross Central we are selling an asset we no longer need to keep and realising its value for the taxpayer. The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.”

"The sale is a significant opportunity for private capital to gain exposure to one of Europe’s most important city centre regeneration projects."

Chief secretary to the Treasury Greg Hands added: "Cutting the deficit and building a strong economy are priorities for this Government. Key to this is getting out of the business of owning assets that should be in the private sector.

"Selling our stake in the land around King’s Cross is an important milestone which will raise money to pay down the public debt while also encouraging private sector investment in an important London site.”

Lazard has been appointed as financial adviser to conduct the sale, supported by Savills as real estate advisers.

The King’s Cross estate is being developed as 740,000 square metres of mixed use space, consisting of offices, apartments, retail space, educational establishments and leisure areas. There will be 50 new and refurbished buildings and 10 hectares of public spaces, which include 10 new parks and squares, 20 new streets and three new bridges across the Regent’s Canal. Apart from Google, other occupiers will be BNP Paribas Real Estate, the Aga Khan Development Network and University of the Arts London. 

The decision to sell the Government’s 36.5 per cent share in the King's Cross Central Limited Partnership was announced by the Chancellor in June, and prospective investors are being advised to contact Lazard by 7 September.