Grosvenor Britain and Ireland and The Hongkong and Shanghai Hotels (HSH) have announced a 50:50 joint venture partnership, upon completion of HSH's acquisition of Derwent London's 50% leasehold interest in 1-5 Grosvenor Place, London SW1.
The newly formed partnership intends to redevelop a 1.5 acre site opposite the gardens of Buckingham Palace and overlooking Hyde Park into a mixed use scheme, which will include the Peninsula London.
Clement Kwok, managing director and chief executive of HSH, said: "London is one of the world's most important financial centres and a key international gateway city for business tourism. This project is consistent with our group's long-term strategy, representing our desire to further expand in Europe."
Peter Vernon, chief executive of Grosvenor Britain and Ireland, which owns 300 acres of real estate n Mayfair and Belgravia worth £4.8b, added: "We're incredibly excited to be working in partnership with Asia's longest standing hotel operator whose expertise will be invaluable to delivering an exceptional scheme in such a prominent location in central London."
HSH opened the first Peninsula hotel in Hong in 1928 and now has nine properties in Asia and the USA. It's first European hotel is due to open in Paris.