Spanish bank BBVA is close to completing its disposal of a stalled central
Having already sold the scheme’s hotel element to Spanish hotelier Sol Melia for £97m, the bank is now in advanced discussions to sell a 999-year lease on the residential element of the project to Frogmore Property for around £40m.
The redevelopment of the former Marconi House, 336-337 Strand, WC1, was placed in administration in July 2009 after BBVA pulled the plug on developer Grupo Urvasco. BBVA subsidiary Anida then bought the site out of administration for £110m in January.
Frogmore, led by Paul White, is expected to enlist Galliard Homes to sell the 79 flats once the development is complete in September 2011. Sources said that the pair would seek to sell the homes off values of £1,500- £2,000 per sq ft.
Sol Meliá has said that it would now take over the construction of the hotel, which was designed by Foster + Partners, for an estimated £45m (€52m).
The ME by Meliá is expected to open in 2012 and will be the second hotel for the Sol Meliá chain in
Gabriel Escarrer Jaume, vice chairman and CEO of Sol Meliá, said: “This deal brings the addition of a strategic asset in a key destination, and also positions the brand in one of the most important feeder markets in the world travel industry.”
Frogmore declined to comment.
annabel.dixon@estatesgazette.com
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