Indiabulls Real Estate Ltd. won approval to develop as many as 41 apartments and a five-star hotel on Hanover Square in London’s Mayfair district, according to the Westminster Property Association.
The project, on a plot acquired last year for 155 million pounds ($240 million), was approved late Tuesday by Westminster council, the WPA said. The hotel will have 51 bedrooms and a public bar, according to a filing on behalf of the New Delhi-based developer. The site is now valued at 230 million pounds by broker CBRE Group Inc. following the approval, Indiabulls said on Wednesday.
Developers have been turning offices into homes in Mayfair because apartments sell for about 3,500 pounds a square foot compared with 2,800 pounds a square foot for the best office space, according to data compiled by broker Jones Lang LaSalle Inc. Indiabulls can sell the apartments on Hanover Square for about 4,750 pounds a square foot, according to a presentation to investors.
Home values in Mayfair rose 2.9 percent in the year through September, outperforming Knightsbridge and Belgravia, according to Knight Frank LLP, another broker.