The developer behind plans to build a new luxury hotel on the site of the former US embassy in Mayfair has secured a £450m green loan to finance its construction.
Building work began this year on Chancery Rosewood, a 139-room luxury hotel and retail site in Grosvenor Square.
Qatari Diar, the real estate division of Qatar’s sovereign wealth fund, today said it had agreed the loan with a string of lenders including HSBC and Credit Suisse.
The £450m cash injection has qualified as a green loan, meaning it is contingent on the project meeting environmental criteria.
Qatari Diar said the new hotel would boast extensive green roofs, minimise water consumption and implement energy efficiency measures.
“Securing the loan financing for The Chancery Rosewood, and having it classified as a green loan, is an important milestone for the project and one we are extremely proud of,” said Tariq Al Abdulla, chief development and project delivery officer at Qatari Diar.
“Through the strength of the scheme and despite the challenges of the current climate, we have been successful in receiving the financing that will be instrumental in the transformation of Grosvenor Square.”
The Chancery Rosewood forms a key part of plans to revamp Grosvenor Square and attract more visitors to the iconic Mayfair location.
The Grade II listed building, which served as the US embassy from 1960 until its move to Nine Elms in 2018, is being redesigned by British architect Sir David Chipperfield.
The luxury hotel, set to open in 2024, will boast a range of dining and entertainment spaces, spa and wellness facilities and a grand ballroom. The site will also include retail spaces at ground level.
The project is one of a number backed by Qatar’s sovereign wealth fund currently underway in London. It is also developing new residential complexes at Chelsea Barracks and Southbank Place.
The loan was provided by Credit Suisse, HSBC, Intesa Sanpaolo, Qatar National Bank and United Overseas Bank. Rothschild acted as financial advisor and DLA Piper acted as legal counsel for Qatari Diar, while HSBC acted as green loan coordinator.