SINGAPORE (Oct 15): Hotel Properties Limited says wholly owned subsidiary HPL (Paddington) and Anchorage View Private Limited (AVPL) is planning to acquire the freehold property located at 31 London Street, Paddington, London W2, England from Royal Mail Group for for £111 million ($225 million).

The freehold site has a total land area of 1.11 acres.

HPL (Paddington) and AVPL are assessing the property’s potential for residential and retail redevelopment.

The ultimate shareholders of AVPL are Ong Beng Seng and David Fu Kuo Chen, the Managing Director and non-executive director of HPL respectively.

The property, formerly the Royal Mail Delivery Offices, is located in the heart of Paddington, immediately to the east of Paddington Station.

The site is bounded by London Street to the west, Winsland Street to the north and Praed Street to the south.

For the purpose of the acquisition, HPL (Paddington) and AVPL have set up a joint venture company called Great Western Developments.

HPL (Paddington) and AVPL will own stakes of 70% and 30% in Great Western Developments respectively.

On receiving planning permission for development of the property, Great Western Developments have to pay further planning overage payment of £20 million to Royal Mail Group.

HPL says its share of the acquisition of the property will be funded with a combination of third-party loans and internal resources.

HPL (Paddington) was set up as a wholly owned subsidiary, HPL Properties (West), which is also a subsidiary of HPL.