Standard Life and Hemmingway are putting 180 High Holborn and the Drury Lane Hotel, WC2, on the market for around £28m.
The block, which includes 5,574 sq m (60,000 sq ft) of offices occupied by British Telecom, could be redeveloped as a much bigger hotel with up to 370 rooms. The decision to sell follows the disposal of another hotel redevelopment site nearby – Victoria House in Bloomsbury Square, WC1 – for almost twice the £15m asking price.
At the moment the building yields around 9.5%. Queen’s Moat House operates the163-bedroom hotel on a lease with 29 years remaining. BT holds the offices for a further 12 years, although the company could pay a substantial reverse premium should it decide to vacate early as part of its Workstyle 2000 programme.
Strutt & Parker and Richard Ellis have been instructed to market the building.
EGi News 06/02/97
