LONDON (dpa-AFX) - Grosvenor and Derwent London Plc (DLN.L) announced that, following signature of their memorandum of understanding in October 2011, they have restructured their leases and established a joint venture to work towards the redevelopment of 1-5 Grosvenor Place, London SW1.
The existing properties occupy a site of over 1.5 acres, at Hyde Park Corner, which offers the opportunity to undertake a substantial mixed-use redevelopment, to include a luxury hotel, office and residential uses.
As per the agreement, Derwent London's leases, which were due to expire in 2063 and 2084, have been restructured into a new 150-year term at a ground rent of 5% of rental income. Grosvenor hold the freehold. Simultaneously Derwent London has sold 50% of its ownership to Grosvenor and received 60 milliom pounds.
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