Derwent London - joint venture with Grosvenor in relation to 1-5 Grosvenor Place and restructure of leases

  • 01 Mar 2012
 

Slaughter and May advised Derwent London on a joint venture with Grosvenor to work towards the development of 1-5 Grosvenor Place, London SW1. The joint venture which was announced on 1 March 2012, follows on from a memorandum of understanding between the parties announced in October 2011, on which Slaughter and May also advised.

Under the agreement, Derwent London's leases, which were due to expire in 2063 and 2084, have been restructured into a new 150-year term with a ground rent of 5% of rental income. Simultaneously, Derwent London has sold 50% of its ownership to Grosvenor for £60 million and Grosvenor retain the freehold.

The 1.5 acre plot, next to Hyde Park Corner, offers the opportunity for a substantial mixed-use redevelopment, likely to combine a luxury hotel with commercial office and residential uses. The current buildings extend to 168,000 sq ft.

Derwent London will continue its asset management role at the site, with Grosvenor managing the development.

Derwent London plc is the largest central London focussed REIT with an investment portfolio of £2.6 billion comprising 5.4 million square feet.

 
 

Contacts

 

Real Estate: John Nevin (partner), David Seymour (associate), Alicia Sheridan (associate), Gemma Costello (associate); Tax: William Watson (partner), Ed Milliner (associate); Corporate and Commercial: Nilufer von Bismarck (partner); Financing: Matthew Tobin (partner), Ivo Stourton (associate)

 
List of all recent work 
 

Related regions and countries