Hot on the heels of striking a GBP135 million syndicated bank funding agreement for the redevelopment of the Metropole building and the adjacent 10 Whitehall Place in central London, International Hotel Investments has awarded a GBP100 million contract for the landmark properties’ restoration to the Ardmore Group.
Ardmore had fought off stiff competition for the prestigious project from rival bidders John Sisk and Laing O’Rourke, both of which had made the short list in March.
The contract is being considered as something if a feather in Ardmore’s cap, being one of the most prestigious projects underway in London, given its prime location, the history of the sites in question and the high quality specifications attached to the job.
The buildings are being transformed into what IHI describes as a “flagship London luxury hotel and residences project” – work that is scheduled to be completed by the end of next year.
A little over a year ago, IHI announced it had acquired the historic site, on Northumberland Avenue, from The Crown Estate, which manages properties owned by the British monarchy, for GBP135 million.
Since then the company, the largest non-banking equity on the Malta Stock Exchange, has secured full funding and has begun work on revamping both buildings into a luxury hotel and private residences.
IHI announced yesterday it had secured a GBP135 million bank funding deal – raised from a syndication of banks led and arranged by Barclays and including the Libyan Foreign Bank, the Arab Banking Corporation and Bank of Valletta.
The loan agreement, plus the original purchase price, brings the company’s investment in the dual properties to a total of GBP270 million (€302 million).
The two properties were purchased last year by a consortium owned equally by IHI and two of its principal shareholders – the Libyan Foreign Investment Company and Nakheel Hotels of Dubai.
The deal has increased the value of IHI’s portfolio to €1 billion in owned hotels, retail space and offices across Europe and Africa, including landmark properties in St Petersburg, Prague, Budapest, Tripoli, Malta and Lisbon.
This latest addition to the portfolio, being dubbed The Corinthia Hotel & Residences, is the company’s first investment in the UK.
The building was the famed Metropole Hotel from the 1880s to 1936 and the British Air and Defence Ministries until 2004 when it was vacated. Now IHI aims to transform the vacant properties into one of London’s “most exceptional luxury hotels”, after it had fended off competition from 26 of the world’s leading developers for purchase.
The establishment is to have 300 bedrooms with room sizes averaging 45 square metres, as well as multi-level penthouse suites and terraces affording spectacular views of the River Thames, Trafalgar Square and Whitehall.
The property will also include a large central courtyard foyer, two clusters of restaurants, a destination bar, a ballroom restored to its original splendour and meeting facilities.
The adjoining 10 Whitehall Place property will be redeveloped to include a 2,500 square metre luxury spa run by ESPA, and a suite of 12 exclusive residences ranging from 250 square metres to over 1,000 square metres.