A weekly round up of the property news from the central London boroughs

City of Westminster

The Evening Standard reports that the American Embassy in Mayfair is to be converted into a luxury hotel as part of a £1bn restoration of Grosvenor Square. The building is set to become a 137-bed five star hotel with a spa and ballroom for 1,000 guests, subject to planning. There will also be six high-end shops and five restaurants.

EG reports that UK Commercial Property Trust has appointed Crossland Otter Hunt to market 6 Arlington Street. The ground floor is an art gallery, offices are on floors one to four and flats are on the fifth floor.

EG reports that Aberdeen Asset Management has sold the freehold interest in 1 Welbeck Street to Lazari Investments for more than £103m. 

EG reports that Cornerstone Real Estate has provided an £87m refinancing of the Park Plaza Hotel Victoria. The 10-year loan reflects a 53.9% loan-to-value on the £161.5m hotel at a fixed rate of 3.4% 

PW reports that Thor Equities has acquired 1 Dover Street, best known as the home of nightclub Mahiki. The company has paid £47.2m to South Korean shipping line Hanjin Shopping for the mixed-use building. The 23,000 sq ft, six-storey building also offers retail and office space and a top-floor penthouse apartment.

CoStar News reports that Cain Hoy has bought 19 South Audley Street for around £80m from Lord Rumi Verjee.  

CoStar News reports a Carter Jonas survey which shows total West End office occupation costs for new, prime located Grade A space have risen by up to 16.1% since Q1 to £217.75 since Q1 2015.

Hackney

PW reports that Brockton Capital has bought the Shoreditch Village development from Shoreditch Village Ltd. The first phase is already under development and comprises a Citizen M hotel as well as retail and residential elements. Phase two has planning consent for 50,000 sq ft office and retail space, but Brockton are expected to submit a new planning application for a mixed-use commercial scheme. Knight Frank represented Shoreditch Village Ltd. Colliers represented Brockton Capital.

Lambeth 

EG reports that U+I has been appointed as partner for the redevelopment of the old London Fire Brigade HQ at 8 Albert Embankment. LFEPA selected the developer from a shortlist of four after a full public procurement process.

Kensington & Chelsea

PW reports that Resolution Property has submitted plans for a 100,000 sq ft mixed-use development at the former home of reggae label Trojan Records in Notting Hill.

Tower Hamlets

EG reports that Land Securities has sold the Thomas More Square Estate to Resolution Property for £300m – a 5.5% yield.