Peninsula Hotels has plans to develop a 1960s office block on London's Hyde Park Corner into a new luxury hotel.
The company is setting up a joint venture with freeholder Grosvenor to redevelop the building. In addition to a hotel, the redeveloped site, which is owned by Derwent London and Grosvenor, will feature a residential complex, according to the Construction Enquirer.
Derwent has now confirmed plans to sell its 50% stake to Peninsula Hotels for £132.5m.
Derwent said: "It is intended that, following the disposal of Derwent London's interest, Peninsula Hotels and Grosvenor will work together towards redevelopment of the site as an hotel and residential scheme."