Derwent London has agreed to sell its 50% interest in 1-5 Grosvenor Place in London to Hongkong & Shanghai Hotels for 拢132.5 mln (鈧�155 mln) before costs.
Derwent London has agreed to sell its 50% interest in 1-5 Grosvenor Place in London to Hongkong & Shanghai Hotels for 拢132.5 mln (鈧�155 mln) before costs.
In a statement, Derwent London said the transaction price represents a 70% premium to the interest's appraised value of 拢78 mln at year-end 2012.
The existing properties comprise mainly offices and extend to 15,600m2 at Hyde Park Corner, Belgravia.
The disposal comes a year after Derwent London sold an initial 50% stake in the building to the freeholder Grosvenor for 拢67.3 mln. As part of the deal, Derwent London鈥檚 leases, which were due to expire in 2063 and 2084, were restructured onto a 150-year term.
Derwent London said the agreement is not legally binding yet. If successful, the two parties plan to work together towards redevelopment of the site as an hotel and residential scheme.
John Burns, CEO at Derwent London, said the deal 'moves Derwent London towards securing most of its anticipated gain from the redevelopment of 1-5 Grosvenor Place'.
