Derwent London has sold Wedge House, 40 Blackfriars Road SE1, a 38,700 sq ft vacant freehold office building, for £33.5m before costs to Ennismore. Derwent London, in collaboration with Ennismore, obtained planning permission from the London Borough of Southwark this summer for a 110,000 sq ft hotel and office scheme. Ennismore will now undertake the development and operate The Hoxton, Southwark – the 68,200 sq ft hotel that will comprise 192 rooms, a restaurant, conference space and a rooftop bar. In addition there will be 41,800 sq ft of offices.
Derwent London is retained as development manager during the construction of the project and will receive fees of £1.5m for the role. Construction of the 15-storey scheme, designed by architects Lifschutz Davidson Sandilands, is due to commence early next year.
Nigel George, Director, Derwent London, commented:
“Obtaining planning permission and the subsequent sale has allowed us to release value early. The proceeds will be used for our ongoing development pipeline. We look forward to working further with The Hoxton to deliver this exciting Southbank scheme.”
Sharan Pasricha, Founder and CEO of Ennismore / The Hoxton, commented:
“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.”