LONDON—The U.K. government has put its 36.5% stake in the 67-acre King's Cross Central redevelopment here up for sale, hiring Lazard and Savills plc to market its share. Europe's largest CBD redevelopment, the project encompasses 5.8 million square feet of commercial, residential, retail, educational and leisure accommodation across 50 refurbished buildings and is expected to be worth more than £5 billion (US$7.8 billion) when completed in five years' time.

“By selling the government's shares in King's Cross Central we are selling an asset we no longer need to keep and realizing its value for the taxpayer,” says Transport Minister Robert Goodwill. “The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.” The government owns its stake in the King's Cross estate through its 100% owned subsidiary, London & Continental Railways.

Adds Greg Hands, Chief Secretary to the Treasury, “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.”

Chancellor Robert Osborne announced in June that the government would sell its stake in the project, part of an ongoing privatization program. The sale of the government's stake is expected to bring in £360 million, or approximately US$562 million.

Logistics firm DHL is also selling its 6% stake in the King's Cross estate, according to published reportys. Other shareholders include AustralianSuper, which owns a 25% stake, and Argent King's Cross, the estate's asset manager working with Hermes Investment Management, which holds 32.5%.