Indian real estate developer ABIL group has acquired a retail and office building at 5 Strand in central London from Blackrock property fund for more than £90m.
The acquisition is the developer’s first investment in the UK, according to real estate firm Savills, which acted on ABIL’s behalf in the purchase.
The 72,359 square foot (sq ft) building is let to Westminster City Council and Boots.
The property was marketed with plans designed by Adjaye Associates for a 200-room hotel scheme along with planning consent for a new 152,400 sq ft development.
The development plans include 61,670 sq ft of office space, 5,376 sq ft of retail space and 38,941 sq ft of luxury residential accommodation.
Barry Mangan, director in the central London investment team at Savills,said: “Located adjacent to Trafalgar Square, close to Charing Cross station, 5 Strand presents an attractive redevelopment opportunity to maximise the building’s strong position in prime central London.
“As such it makes a good investment for our client, in their first UK purchase.”
Data from Savills shows that overseas investment into hotels in London totalled £1.06bn last year, an increase of 17.7 per cent on 2016.
Gary Witham, director in the hotels team at a Savills, said: “The London hotel market continues to attract a wide range of overseas investors with the city providing attractive long term income prospects.
“As the first purchase for our client, 5 Strand makes an excellent choice providing the opportunity to create a leading purpose built hotel l in a tourist location that is recognisable to a global audience.”
Pune-headquartered ABIL Group was founded in 1979 and has developed the St. Regis Mumbai, W Goa, Westin Pune and Le Meridian Nagpur, all high end luxury properties under the Marriott brand across India.
Cushman & Wakefield, together with Tudor Toone, advised Blackrock on the sale.