Benson Elliot Capital Management, the London-based private equity real estate firm, and UK developer Stanhope have acquired a majority interest in the company established by Sackville Properties for the landmark Station Hill redevelopment in Reading.

The transaction represents the first investment for the £500 mln (EUR 602 mln) fund, Benson Elliot Real Estate Partners III.

Alongside the £850 mln (EUR 1 bn) upgrading and enhancement programme at Reading Station, the first phase of which will be completed in 2013, the Station Hill development is the centrepiece of plans to renew the heart of Reading, and reinforce the town as the capital of the Thames Valley.

Sackville Properties, under the leadership of Chairman Sir John Madejski, initiated the Station Hill project, acquiring the main portion of the site from Land Securities in 2005. Sackville extended the site through further land acquisitions before securing a resolution to grant planning consent for a 160,000-m2 mixed-use project in 2009. More recently, Sackville has been looking for a funding and development partner to secure the resources and experience required to bring forward the re-development of the site.

Stanhope, led by David Camp, is recognised as one of the most experienced developers of large-scale urban projects in the UK, with a track record encompassing landmark projects such as Broadgate and Chiswick Park. Benson Elliot founder Marc Mogull has led the funding of urban regeneration projects across Europe during the past 20 years, and is the UK Chairman of the Urban Land Institute.