Derwent partners with Grosvenor in Hyde Park scheme

Kasmira Jefford
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PROPERTY firm Derwent London has set up a joint venture with Grosvenor Estates, London’s biggest landlord, to redevelop a 1.5 acre site at Hyde Park Corner into a £200m luxury scheme.

The two are planning to turn 1-5 Grosvenor Place into a mixed-use development, which will include a five-star hotel as well as offices and homes.

Derwent has owned the site for almost 20 years, but has agreed to sell 50 per cent of its ownership to Grosvenor, which owns the freehold, in return for £60m.

Grosvenor – owned by the Duke of Westminster – also extended Derwent’s leases on the site to 150 years.

The announcement was made alongside Derwent’s full-year results, which revealed a 15.4 per cent hike in net asset value and record number of lettings in the period from both domestic and overseas investors.

The group struck 100 deals last year, producing rental income of £16.7m per annum on floorspace of 495,700 square feet, up from its 2010 performance, when the lettings totalled £8m per annum.

The landlord announced just last week the pre-let of its Page street development in Victoria to fashion house Burberry.

John Burns, chief executive officer, said: “The robust leasing activity we experienced in the first half of the year has continued throughout 2011 and into 2012 and we are confident that the quality and distinctive space in our portfolio will continue to attract a diverse mix of tenants.”