Invesco Real Estate, the global real estate investment manager, and YardNine, the property development and asset management company, have received a resolution to grant planning permission for plans to redevelop 40 Eastbourne Terrace, a five-storey office, as a 366-bed hotel as part of a major mixed-use development next to Paddington Station.

Invesco Real Estate acquired 40 and 50 Eastbourne Terrace on behalf of a US separate account client in July 2018, working with YardNine, to identify a range of initiatives to redevelop the properties and deliver Grade A office stock to an under-supplied market, alongside new hotel, retail and residential accommodation. Since then, significant progress has been made on site to reposition the assets, commencing with the successful physical separation of the two buildings.

At 50 Eastbourne Terrace, the team has advanced plans for the delivery of more than 85000 sq ft of mixed-use space following receipt of planning consent for an additional storey of office accommodation. Demolition works are nearing completion and with the appointment of a main contractor anticipated before Christmas, the speculative scheme is due to complete in Q4 2021. 50 Eastbourne Terrace will provide a range of floorplates from 5,000 to 14,500 sq ft, over 3,500 sq ft in total of outside terraces, as well as retail space and a terrace of seven mews houses.

Following the resolution to grant planning consent for 40 Eastbourne Terrace, construction work will begin following vacant possession of the asset in 2021.

Located directly opposite London Paddington station, adjacent to the entrance to the Elizabeth Line, tenants, residents and guests will benefit from close proximity to national and local travel links, the leisure, retail and dining options of Paddington Basin and the West End, and the green space of Hyde Park.

The scheme was designed by leading architects Sheppard Robson.

Mark Younger, Director of YardNine said: “This latest planning consent follows an extremely active 14 months since acquisition.  We firmly believe in the enduring appeal of London as a city to live, work and play and in the wider regeneration story of Paddington. 

 Richard Chambers, Senior Director – Asset Management, Europe at Invesco Real Estate, said: “40 and 50 Eastbourne Terrace presented a compelling and well-located investment opportunity, so it is great to see the progress that has been made in a relatively short period of time. We are excited about being part of the story of further enhancing the strong growth of the Paddington market with a complementary mix of high quality buildings and uses. We are looking forward to continuing our work with YardNine as we realise the potential of the two properties in the coming years.”