Native Land announced today that it has completed the purchase of 30 Old Burlington Street, a prime development site for gallery and residential space in the heart of Mayfair. The joint venture behind the purchase has also secured financing for the development, through a debt facility of £91.73 million from Oversea-Chinese Banking Corporation Limited.
Native Land agreed to buy the freehold site in August 2012 in joint venture with Hotel Properties Limited (HPL), the Singaporean hotel, property and retail group, and Amcorp Properties Berhad (Amcorp), the Malaysian property, engineering and infrastructure group. The vendor, Standard Life Investments, will retain a strategic interest in the investment via a tailored profit participation scheme.
The facility will enable Native Land and its partners to redevelop the existing 83,000-sq-ft office and gallery building as a residential apartment block with world class amenities, together with space for art galleries and a restaurant on the lower floors. The target delivery date for the scheme will be 2016.
Alasdair Nicholls, Chief Executive of Native Land, said:
“In a constrained debt market, Oversea-Chinese Banking Corporation Limited’s provision of a £91.73 million debt facility is an endorsement of both the quality of the proposed scheme and the appeal of the prime Central London market. The standing and track record of the shareholders involved in the joint venture undoubtedly also contributed to Oversea-Chinese Banking Corporation Limited’s interest in funding the scheme.
“We expect 30 Old Burlington Street to become the most sought-after development in Mayfair. It will satisfy international and domestic demand for new build accommodation in an area boasting London’s finest restaurants, shopping and galleries.”
Native Land has been consulting on its plans since September and is at an advanced stage of preparing a planning application for the site, which is due to be submitted in early 2013.