London Tunnels, which aims to transform an abandoned underground network into a tourist attraction, has abandoned plans to set up operations in the capital and has instead opted for a stock exchange listing in Amsterdam.
The company wants to turn the Kingsway interchange tunnels, an 8,000 square meter network under Holborn in central London, into a new attraction that will attract 2 million visitors a year.
The group announced on Monday that it hoped to raise £30 million through a listing on Euronext Amsterdam, saying it could make the most of the size and scale of Europe’s equity and capital markets by listing in the Dutch capital .
The decision comes after the company sent papers to the London Stock Exchange (LSE) in January outlining its intention to float in the capital.
At the time, CEO Angus Murray said: “This unique series of tunnels, owned by a British company, built by the British Government, for the defense of Britain, can further enhance London’s reputation as a leading tourist destination. should be listed in London.
The company’s change of heart is the latest blow to the LSE after a number of high-profile companies opted to list in Europe and the US ahead of London in recent months.
In May, Paddy Power’s owner Flutter announced its decision to move its primary listing to New York, while British chip designer Arm opted to list on Wall Street last August after the government failed to expel the company. to become listed on the London stock exchange.
However, this was partly offset by major players such as fashion retail company Shein and Raspberry Pi announcing plans to list on the LSE.
The Kingsway Tunnels were built in the early 1940s to provide shelter for up to 8,000 people during the blitz, but were never used for this purpose.
Instead, the Special Operations Executive, responsible for organizing espionage and sabotage operations in German-occupied Europe, saw action during the last two years of the war and is believed to be the inspiration for the Q branch in the James Bond novels by Ian Fleming.
The tunnels later housed the first secure transatlantic telephone cable, which ran a hotline connecting the White House and Kremlin during the Cold War, before ownership was transferred to British Telecom (BT) in 1981.
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London Tunnels has agreed to buy the site from BT next year and plans to open the attraction in 2027, including exhibitions celebrating the history of the tunnels, and the restoration of the city’s deepest London bar, which in the years eighty was closed.
However, the prospectus lists a number of risk factors for the project, including warning that plans could be delayed if it cannot obtain the full planning permission it needs.
It was given the green light by the City of London Corporation last month, but is still awaiting planning approval from the London borough of Camden.
The list also includes risks around whether the structural integrity of the tunnels is compromised due to their age, the possibility that removing asbestos from the tunnels may take longer than expected, and the company may not be able to complete the acquisition of the leasehold on the agreed date of June 30 next year.
London Tunnels explained its decision to move the listing, saying it could provide the £20 to £30 million needed in the first few years of development. It added that it would then seek to raise a further £120 million in debt and equity to make the tunnels operational.