The Croydon Park hotel in London is to be transformed into flats after the local council sold it to Amro Real Estate Partners for £24.9m.
Croydon Council bought the 211-bedroom for £29.8m in 2018 to "bring in additional income" and "fund core services", however in June 2020 it fell into administration due to the impact of Covid-19, with all 91 members of staff made redundant.
Councillor Callton Young, cabinet member for resources and financial governance said: "We can confirm the sale of Croydon Park Hotel for £24.9m to Amro Real Estate Partners/Flemyn LLP following a competitive bidding process, achieving above market value despite current post-pandemic property impacts, particularly in the leisure sector. This sale marks another positive step towards council financial stability, in this case, via our wider asset disposal strategy."
Amro Real Estate Partners has announced plans for a £200m build to rent scheme, which will see the site redeveloped to create around 600 flats, a roof terrace, a gym/wellness centre and a cinema room. Construction is scheduled to begin in spring 2023, with the development set to open in 2025.
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