Olympic Village is sold – at £275m loss

 

The London 2012 Olympic Village has become Qatar's latest sporting acquisition.

The property company of the Arab state's royal family has signed a £557m joint agreement with the British developer Delancey to buy and manage the athletes' village as private housing after the Games.

Qatari Diar and Delancey will take over 1,440 of the 2,818 homes on the site, inset, and acquire land to build up to 2,000 more. However, the deal still leaves UK taxpayers exposed to a £275m shortfall as private investors backed out of the construction project during the recession.

Budget figures show that the cost of the village's development will be £1.1bn. A further £268m has already been recouped from the sale of 1,379 affordable housing units on the site to Triathlon Homes.

The Qatari deal is expected to ensure that £324m will be repaid. Jeremy Hunt, the Culture Secretary, said the Qatar sale would "give taxpayers a great return". He added: "This is a fantastic deal that will give taxpayers a great return and shows how we are securing a legacy from London's Games."

Under the venture, the 27-hectare site will become a "new neighbourhood". It will have a mix of affordable housing, luxury new homes, schools, healthcare facilities and open space, Delancey said. The 1,440 homes will be rented out.

The deal creates the first UK private-sector residential fund of more than 1,000 homes to be owned and directly managed as an investment. The Qatari and Delancey partnership has also bought the right to develop six further plots of land for up to 2,000 houses.

The purchase is the latest in a long line of prize assets secured by the Qataris, which last year won the right to host the 2022 football World Cup. The London department store Harrods was sold to Qatar Holdings for a reported £1.5bn last year.

Boris Johnson, London Mayor, said the sale was a "great deal for London" that showed that large investors had confidence in east London's future.

Jamie Ritblat, chief executive of Delancey, said: "[It is] offering the chance to break the mould and create a sustainable leasing model to provide first-class accommodation for those who see the chance to rent long-term as the way forward."

Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Buttoned up: Ryan Reynolds with Helen Mirren in ‘Woman in Gold’
filmFor every box-office smash in his Hollywood career, there's always been a misconceived let-down. Now he says it's time for a reboot
News
people
News
Actress Julianne Moore wins the Best Actress in a Leading Role Award for 'Still Alice' during the 87th Annual Academy Awards in Hollywood, California
people
Sport
Ross Barkley
footballPaul Scholes says it's time for the Everton playmaker to step up and seize the England No 10 shirt
News
'We will fix it': mice in the 1970s children’s programme Bagpuss
science
Life and Style
2 Karl Lagerfeld and Choupette
fashion
Caption competition
Caption competition
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

War with Isis: Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria's capital

War with Isis

Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria
Scientists develop mechanical spring-loaded leg brace to improve walking

A spring in your step?

Scientists develop mechanical leg brace to help take a load off
Peter Ackroyd on Alfred Hitchcock: How London shaped the director's art and obsessions

Peter Ackroyd on Alfred Hitchcock

Ackroyd has devoted his literary career to chronicling the capital and its characters. He tells John Walsh why he chose the master of suspense as his latest subject
Ryan Reynolds interview: The actor is branching out with Nazi art-theft drama Woman in Gold

Ryan Reynolds branches out in Woman in Gold

For every box-office smash in Ryan Reynolds' Hollywood career, there's always been a misconceived let-down. It's time for a rethink and a reboot, the actor tells James Mottram
Why Robin Williams safeguarded himself against a morbid trend in advertising

Stars safeguard against morbid advertising

As film-makers and advertisers make increasing posthumous use of celebrities' images, some stars are finding new ways of ensuring that they rest in peace
The UK horticulture industry is facing a skills crisis - but Great Dixter aims to change all that

UK horticulture industry facing skills crisis

Great Dixter manor house in East Sussex is encouraging people to work in the industry by offering three scholarships a year to students, as well as generous placements
Hack Circus aims to turn the rule-abiding approach of TED talks on its head

Hack Circus: Technology, art and learning

Hack Circus aims to turn the rule-abiding approach of TED talks on its head. Rhodri Marsden meets mistress of ceremonies Leila Johnston
Sevenoaks is split over much-delayed decision on controversial grammar school annexe

Sevenoaks split over grammar school annexe

If Weald of Kent Grammar School is given the go-ahead for an annexe in leafy Sevenoaks, it will be the first selective state school to open in 50 years
10 best compact cameras

A look through the lens: 10 best compact cameras

If your smartphone won’t quite cut it, it’s time to invest in a new portable gadget
Paul Scholes column: Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now

Paul Scholes column

Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now
Why Michael Carrick is still proving an enigma for England

Why Carrick is still proving an enigma for England

Manchester United's talented midfielder has played international football for almost 14 years yet, frustratingly, has won only 32 caps, says Sam Wallace
Tracey Neville: The netball coach who is just as busy as her brothers, Gary and Phil

Tracey Neville is just as busy as her brothers, Gary and Phil

The former player on how she is finding time to coach both Manchester Thunder in the Superleague and England in this year's World Cup
General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?