BlackRock Inc. sold a commercial building at London's Trafalgar Square for almost £100 million to Pune, India-based developer and realtor Abil Group, which plans to redevelop it into a five-star hotel with up to 250 rooms, The Economic Times of India reported.
The freehold, eight-level 5 Strand building was contested over by more than 22 interested buyers, a group that consisted of investors from China, Europe and India, and carried an £80 million reserve price, the June 6 report added. The acquisition price includes a 5% stamp duty and other costs.
Westminster Council is the anchor current tenant at the building, which sits on a site that has secured unconditional planning approval for office, housing, retail and hotel elements spanning over 153,000 square feet of gross internal area and 13 stories.
Abil Group plans to invest another £80 million in the hotel redevelopment, which is expected to be completed in the next four years, the company's managing director, Amit Bhosale, told the publication. The Indian developer funded the acquisition with internal accruals and debt it raised in international markets.
