UK – LSL Partners and Central & Provincial Partners have partnered with Select Alternative Investments and Eastborough Partners to acquire the former Diageo headquarters in London, UK and transform it into a hotel.
The 300,000 sq ft building is located within a 40-acre private landscaped estate, once the former Guinness Brewery. The brewery operated from the estate from 1933 until its closure in 2005.
“LSL Partners is delighted to have initiated, arranged and invested in 1 Lakeside Drive in a joint venture with Central & Provincial Partners and to have brought in Select Alternative Investments and Eastborough Partners to join the JV to acquire this high-quality asset which is perfect for conversion to a high amenity hotel,” Mark Tagliaferri, Chairman of LSL Partners, said.
Park Royal is undergoing a £26 billion (US$34.03B) regeneration plan and will be transformed into a world-class transport interchange. A High Speed 2 (HS2) terminus will be introduced nearby and will be delivered in 2030.
The property was built to an extremely high specification including a spectacular full-height atrium, and benefits from excellent transport links through close proximity to Park Royal and Hanger Lane tube stations and the A40.
Retaining the building allows the most sustainable and low-carbon form of development, and the JV plans to work with the Old Oak and Park Royal Development Corporation (OPDC) to bring forward proposals to reposition the property into a vibrant mixed-use scheme focused around a high-amenity hotel and other commercial uses.
The partnership group believes the repositioned asset will complement the area’s regeneration, which has already seen over 1,200 homes delivered within the business park.
These new proposals seek to deliver material public benefits while minimising the development’s environmental and carbon impact by preserving this magnificent former FTSE100 HQ building.
“This investment highlights the current focus of LSL Partners to acquire and convert existing property assets into better alternative uses,” Mark added.
“We hope to continue this strategy in 2024 with our current joint venture partners and other investors interested in this strategy which we believe has very attractive risk-adjusted attributes.”
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