Bloomberg News

Olympic Village Owners Said to Plan Sales to Overseas Buyers

August 30, 2011

Aug. 30 (Bloomberg) -- The two companies that purchased 1,439 homes in London’s Olympic Park may sell as much as a fifth of the properties to overseas investors, according to two people with knowledge of the situation.

U.K. developer Delancey and a division of Qatar’s sovereign wealth fund intend to sell approximately 300 of the homes abroad, according to the people, who declined to be named because they’re not permitted to speak publicly. The remaining units will be rented out, they said.

Delancey and Qatari Diar Real Estate Investment Co. this month agreed to pay 557 million pounds ($909 million) for the homes in the athlete’s village and the right to build as many as 2,000 more units on the site in London’s East End district, according to an Aug. 12 statement from the buyers.

“The majority of properties will be held for rental and the remainder will be released for sale on the open market,” said Jamie Robertson, a spokesman for closely held Delancey. “It’s too early in the process to be any more specific but further information will be released at the appropriate time.”

Qatari Diar didn’t immediately respond to an e-mail seeking comment.

London 2012 Olympic officials are finding ways to convert and sell facilities built for the 2012 Games after previous host cities such as Athens were left with unused or underutilized properties. The Olympic Village, which cost 1.1 billion pounds to build, will house 17,000 athletes and officials across 67 acres (27 hectares), the U.K. government said in May 2009.

The purchase of the athlete’s village includes the long- term management of the site, the buyers said in the August statement. The government will get a share of any profits from the development, they said, without being more specific.

--Editors: Ross Larsen, Andrew Blackman.

To contact the reporter on this story: Chris Spillane in London at cspillane3@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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