Derwent London has sold a development site on London’s South Bank to Hoxton Hotel owner Ennismore for £33.5m, as the company prepares to build a third branch of its East End venue.
The FTSE 250 developer and Ennismore teamed up to gain planning consent this summer to convert Wedge House at 40 Blackfriars Road into a 15 storey hotel and office scheme.
Ennismore will now develop and operate The Hoxton, Southwark, following the deal. Work on the scheme, designed by architects Lifschutz Davidson Sandilands, expected to kick off early next year.
The hotel will span 68,200 sq ft and comprise of 192 rooms, a restaurant, conference space and a rooftop bar. It will also have around 41,800 sq ft of office space.
Derwent London will stay on as development manager during the construction of the project and will receive £1.5m for the role. The company said proceeds from the sale will be invested back into its development pipeline.
It currently has 398,000 sq ft of space under construction, including its 293,000 sq ft White Collar Factory scheme on Old Street roundabout, and will start work on a further 620,000 sq ft by June 2016, including the redevelopment of the former Saatchi & Saatchi building at 80 Charlotte street in Fitzrovia,
Sharan Pasricha, founder and chief executive of Ennismore and The Hoxton, said: "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. Like our other properties, we hope The Hoxton, Southwark will further enhance the area, and provide a multi-functional space for locals, hotel guests and those who work in the area."