Northern Irish developer McAleer & Rushe is hoping to cash in on demand for London hotels with the sale of the iconic Swiss Centre in Leicester Square, W1.
The Swiss Centre, bought by McAleer & Rushe for £47m in 2004, is being redeveloped as the UK’s first W hotel, a trendy US brand from hotel giant Starwood.
The developer has instructed Jones Lang LaSalle Hotels to advise it on a strategy for the 210,000 sq ft project, which is scheduled to compete next month. It is expected to fetch more than £200m.
A spokesman for McAleer & Rushe said: “Over recent months we have had numerous direct approaches from parties interested in buying the building. In light of the current strong demand for prime London property we have appointed Jones Lang LaSalle to conduct a review of our best possible strategy.”
He added: “Our current priority is to ensure the successful completion of this prestigious flagship project on time and on budget.”
The Jestico + Whiles-designed scheme will include the 192-bedroom W hotel, which signed a 30-year lease in 2008, 11 flats and a 35,000 sq ft shop let to Mars Retail Group for an M&M’s World store – also a first for the UK.
The privately owned property development, investment and construction firm is expected to recycle cash raised from the sale into further London investments and developments.
Its portfolio includes a South Bank development site, which is also earmarked for two hotels. It is lining up German open-ended fund manager Commerz Real to provide funding for the HKR Architects-designed development at 46-49 Blackfriars Road, SE1.
Last year the Cookstown-based developer offloaded a West End development site at 2-14 Baker Street, W1, to British Land for close to £30m.
bridget.oconnell@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
