RE Capital has announced the construction of a mixed-use hotel-led scheme in Clerkenwell, central London, after securing a £56.2m development loan.
It revealed the new construction will take place on the site of a former Victorian school building and car park. The scheme will comprise a new build 153-bed hotel, plus an extension and remodelling of the existing Victorian schoolhouse to include 18,700 sq ft of Grade A office space and nine new-build affordable residential units. The total development will be 74,000 sq ft.
Planning consent was granted in January 2020 for a 153-bed ‘affordable luxury’ scheme and a pre-let agreement is already in place between RE Capital and German hotel group, Ruby GmbH, for a 30-year term.
According to the firm, the office development will also see a two-storey extension and private terraces added to the existing school building.
Construction has already commenced, with HG Construction appointed as contractor. The offices are due to be completed in February 2023, and the hotel and residential will follow in July.
Simon Banks, head of UK at RE Capital, said: “We are excited to be launching the construction phase of this mixed-use scheme, which will bring significant regeneration to the local area.
“The development will be finished to exceptionally high sustainability, wellness and connectivity standards, focusing on cutting-edge interior design for the newly evolving workplace, alongside the quality that Ruby Hotels will deliver as a highly reputable brand.”
Daniel Austin, Co-founder and CEO of ASK who supplied the loan alongside Oaknorth Bank, added: “This is a fantastic scheme that we were delighted to fund. Having funded a number of hotel and office schemes this year, we are fully confident in the recovery of both these markets post-Covid, as the current take up of office space and steady rise in hotel occupancy proves.”