Royal Free Charity has exchanged contracts to sell the current site of the Royal National Throat, Nose and Ear Hospital for around £55m.
London-based developer Groveworld has acquired the 1.5-acre site at 330 Grays Inn Road, WC1, fending off competition from Israeli billionaire Teddy Sagi’s investment company Labtech, which is understood to have bid for it.
The hospital is in the process of relocating to a new facility on Huntley Street, WC1, and vacant possession of the entire site is expected by September 2020.
The Royal Free Charity owns the freehold to the site, according to Radius Data Exchange, and it is understood that it previously offered a 255-year long lease to the market via Cushman & Wakefield before selling the freehold.
The site consists of a range of buildings, with the most recent additions built in the 1960s, providing a total of 136,000 sq ft of space.
Groveworld funded the acquisition primarily through a £50m financing deal with OakNorth and ASK Partners.
It will now seek to obtain planning permission for a major mixed-use scheme of more than 300,000 sq ft. The developer plans to work closely with the London Borough of Camden and the Greater London Authority to deliver the scheme.
Ross Jacobson, senior development manager at Groveworld, said: “This opportunistic acquisition is in line with our strategy of acquiring well-located central London sites with major development potential. Our long-term ambition for the project is to deliver a high-quality, mixed-use scheme, regenerating what will be a redundant site.”
Founded in 1990, Groveworld has completed several London projects, including most recently: Canaletto – a 31-storey tower on City Road, EC1, and a 118-flat residential scheme on Pentonville Road, N1.
Labtech declined to comment. Cushman & Wakefield was approached for comment.
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