Cerberus is pressing ahead with proposals for a hotel redevelopment in Earl’s Court, SW5, having bought the site out of receivership last month.
The properties, at 19 and 22 Courtfield Gardens and 1 Barkston Gardens, form part of a portfolio at the centre of a legal claim brought against its receivers and lender by its previous owner.
A public consultation on the proposals was held on 19 April, soon after the site was acquired. Sources told EG that the owner is aiming to submit proposals to the Royal Borough of Kensington and Chelsea by the end of this month.
Early-stage consultation documents, seen by EG, show that the owner intends to convert the site’s hostel accommodation into a single, managed hotel. Gerald Eve has been appointed to handle planning matters.
Barkston Rooms was run as a tourist hostel with 429 bed spaces until the Covid-19 pandemic began in 2020. The property at 19 Courtfield Gardens was operating with hotel use before the pandemic.
Minimal changes would be made to the external appearance of the buildings. Cerberus is also seeking to enhance the buildings’ sustainability and energy performances by replacing all building services with low-energy, efficient systems.
Axiom Hospitality is lined up as the operator for the refurbished hospitality sites. Care Property Management was the previous operator.
The news comes after EG revealed that the site’s previous owner, a Saudi Arabian businessman, is suing receivers at Knight Frank and lender Earlsfort Capital Partners over its sale.
The portfolio, which was valued at around £25m, also includes 1 Lexham Gardens and 3 Lexham Gardens, W8, in Kensington.
The claim, filed at the end of March, alleges that an alternative offer for the properties exceeding £26m was not pursued.
A last-minute court order blocking the sale was filed on 30 March. However, the properties were sold to Cerberus soon after, in early April.
Cerberus has not responded to requests for comment. Gerald Eve and Axiom declined to comment.
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