UK listed investor Derwent London has sold the Wedge House office scheme in London for £33.5 mln (€46 mln) to hospitality specialist Ennismore.
UK listed investor Derwent London has sold the Wedge House office scheme in London for £33.5 mln (€46 mln) to hospitality specialist Ennismore.
Derwent London, in collaboration with Ennismore, obtained planning permission from the London Borough of Southwark this summer for a 10,200 m2 hotel and office scheme on the vacant site at 40 Blackfriars Road.
Following the deal, London-based Ennismore will undertake the development and operate the asset under the name of The Hoxton. It will include a 6,335 m2 hotel comprising 192 rooms, a restaurant, conference space and a rooftop bar. In addition there will be 3,885 m2 of offices.
Derwent London is retained as development manager during the construction of the project and will receive fees of £1.5 mln for the role. Construction of the 15-storey scheme, designed by architects Lifschutz Davidson Sandilands, is due to commence early next year.
Nigel George, director, said: 'Obtaining planning permission and the subsequent sale has allowed us to release value early. The proceeds will be used for our ongoing development pipeline.'
'Southwark was an obvious choice for our third London hotel, a neighbourhood that has become an extremely vibrant and cosmopolitan part of the capital with its extensive theatre and food offering,' added Sharan Pasricha, founder and CEO of Ennismore / The Hoxton.