O2 to host hotel and conference centreProperty Week
One of Europe's largest hotel conference centres will be developed on a site next to the 02 arena in Greenwich.
Opportunistic investment manager Queensgate investments has agreed its debut deal to buy from 02 owner AEG hte long leasehold of a 3 hectare site on the River Thames, which links directly into the 02. It aims to develop a 452-bedroom luxury hotel, conference centre and residential scheme.
Queensgate Investments Fund I was launched in April 2012 by ex London & Regional director Jason Kow and LJ Group. It was agreed a $450m joint venture with several private investors to develop the site.
They have signed a hotel management contract with Surinder Arora's Arora Hotels, and it is understood heads of terms are in place on a franchise agreement with Intercontinental Hotels Group.
AEG is said to have retained minority equity interest and already has planning consent.
The scheme will comprise two buildings: one with the hotel, 30,000 sq ft of conference space, and a 3,000 seat ballroom, and the other with 100 private service flats.
Construction is expected to begin in the first quarter of this year, for completion in 2015.