Derwent London has sold Wedge House, 36-40 Blackfriars Road, SE1, to Ennismore for £33.5m.
The 38,700 sq ft vacant freehold office building comes with planning consent for a 110,000 sq ft hotel and office scheme.
Ennismore will now carry out the development and operate The Hoxton, Southwark – a 68,200 sq ft hotel comprising 192 bedrooms, a restaurant, conference space and rooftop bar.
Designed by Lifschutz Davidson Sandilands, the 15-storey scheme will also include 41,800 sq ft of offices.
Derwent London will be paid £1.5m to act as development manager during the construction of the project, which is due to start early next year.
Nigel George, director at Derwent London, said the proceeds would be reinvested in the company’s ongoing development pipeline.
