Elliott Bernerd’s Chelsfield has begun negotiations with Westminster Council to build up to 2,601 sq m (28,000 sq ft) of new retail space at the Westbury Hotel, New Bond Street, W1.
The news follows an announcement that the company has exchanged contracts with Granada to buy two Westbury Hotels in London and Madison Avenue, New York, for £90m.
Bernerd told EGi: “The hotels are unique: both have prominent frontages to interesting shopping streets. We will also be remodelling the London building to make it more trendy than it is at the moment.” Bernerd added that the increased retail floorspace could generate an extra rent of £2m pa in London and $4m pa in New York.
In New York, Chelsfield wants to develop 1,672 sq m (18,000 sq ft) of new retail space, which Bernerd expects to produce an additional $4m pa.
Chelsfield will own a 60% interest in the 244-bed London Westbury, valued by the deal at £195,000 per room. The remaining 40% stake in the 12,077 sq m (130,000 sq ft) building is held by AMP Asset Management. Chelsfield will hold the New York hotel freehold exclusively.
The London Westbury, at the junction of New Bond Street and Conduit Street, posted an operating profit of £5.6m for the 12 months to January 1997. Rental from existing retail units generated an additional £303,000 pa.
EGi News 19/02/97
