|By Russell Lynch, London Evening
StandardMcClatchy-Tribune Regional News
March 01, 2012--Property firm Derwent London is in talks with potential operators over a new, luxury, five-star hotel forming the centrepiece of a pounds sterling 200 million redevelopment at Hyde Park Corner.
Derwent has struck a joint venture with London's biggest landlord, Grosvenor Estates -- which is owned by the Duke of Westminster -- to develop the 1.5-acre site at 1-5 Grosvenor Place, paving the way for a 168,000 sq ft scheme which includes offices and retail alongside the hotel.
Derwent has owned the site for nearly 20 years, but sold a 50 percent share to Grosvenor for pounds sterling 60 million. In return, Grosvenor has extended Derwent's two leases on the site to 150 years.
Derwent's chief executive John Burns said: "This site is under-utilised but it's one of the best sites in the capital."
Despite an uncertain backdrop, Burns has seen strong demand for space from occupiers in its portfolio, mainly centred on Clerkenwell and Tottenham Court Road.
The landlord struck 100 deals last year, most recently letting space to fashion house Burberry in Victoria.
The firm raised its final dividend to 21.9p giving a total of 31.35p, up 8.1 percent on 2010.
(c)2012 the London Evening Standard
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