will go ahead with a plan to acquire its partner's 50% stake in a mixed-useproject in London.
The companyis buying out Grosvenor Britain & Ireland for the 1-5 Grosvenor Placeproperty in Belgravia for £107.5 million in cash.
Aspart of the restructuring of the 50/50 joint venture agreement, the twocompanies will transition to a landlord-tenant relationship, wherein Hongkongand Shanghai Hotels will have full control over the development, while Grosvenorwill retain the freehold on the 300-acre estate.
Hongkongand Shanghai Hotels will also receive all the expected proceeds from apartmentsales and hotel profits, and Grosvenor will receive a fixed base rent.
TheGrosvenor Place complex will include the 190-room The Peninsula London hotel,between 24 to 28 luxury residential apartments, shops, bars and a courtyard.It is expected to open in 2021.