Business
1-5 Grosvenor Place SW1
1-5 Grosvenor Place SW1.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 3426H Derwent London PLC 19 June 2013 \n\n19 June 2013 \n \nDerwent London in talks to sell its interest in 1-5 Grosvenor Place SW1 to Peninsula Hotels for £132.5 million \n \nFollowing the announcement made by The Hongkong & Shanghai Hotels, Limited (\"Peninsula Hotels\") on the Hong Kong Stock Exchange, Derwent London plc (\"Derwent London\"/ \"the Group\") announces that it has entered into non-binding heads of terms to sell its 50% interest in 1-5 Grosvenor Place SW1 to Peninsula Hotels for £132.5 million before costs. As at 31 December 2012 the Group's interest was valued at £78 million. The proposed transaction reflects a 70% premium to that valuation.\n \nThe existing properties comprise mainly offices and extend to 168,000 sq ft (15,600m2), net, at Hyde Park Corner, Belgravia. \n \nIn 2012, Derwent London and Grosvenor, the freeholder of 1-5 Grosvenor Place, restructured their interests and established a joint venture. Under that agreement Derwent London's leases, which were due to expire in 2063 and 2084, were restructured onto a 150-year term. Simultaneously the Group sold 50% of its ownership to Grosvenor for £67.3 million. \n \nOn completion of the proposed transaction with Peninsula Hotels, Derwent London will have received proceeds of almost £200 million from 1-5 Grosvenor Place since the start of 2012. \n \nIt is intended that, following the disposal of Derwent London's interest, Peninsula Hotels and Grosvenor will work together towards redevelopment of the site as an hotel and residential scheme. \n \nThe heads of terms entered into with Peninsula Hotels are not legally binding and consequently the sale may or may not proceed. \n \nDerwent London has a committed capital expenditure programme of around £400 million and is currently on site at projects totalling over 400,000 sq ft (37,200m2). Over the next 12 months Derwent London will start construction of a further 345,500 sq ft (32,050m2) with our White Collar Factory offices at Old Street EC1, retail space at 18-30 Tottenham Court Road W1 complementing our current office scheme at 1-2 Stephen S...