Office specialist property regenerator and investor, Derwent London, has sold a vacant office building, Wedge House, on Blackfriars Road, for £33.5 million, to property developer Ennismore.
Planning permission was granted to the two firms to develop a 10,219sq m hotel and office scheme together in summer 2015. Ennismore will now undertake the development and operate the 6,335sq m hotel, The Hoxton, which will feature 192 rooms, a restaurant, conference space and a rooftop bar, as well as 3,883sq m of offices.
Derwent London will be retained as development manager during the construction of the project.
Building work on the 15-storey scheme, which was designed by architects Lifschutz Davidson Sandilands, is due to commence early next year.
Nigel George, director, Derwent London, said: “Obtaining planning permission and the subsequent sale has allowed us to release value early. The proceeds will be used for our ongoing development pipeline. We look forward to working further with The Hoxton to deliver this exciting Southbank scheme.”
Southwark Council has bought Courage Yard on Shad Thames, near Tower Bridge, which it will redevelop to generate income for frontline services.