Crossrail have acquired 18/19 Hanover Square, W1 from Great Portland Estates plc (GPE) via a compulsory purchase order (CPO) under the Crossrail Act 2008 to enable the development of the Bond Street Crossrail station.
The initial cash received by GPE from the CPO is £35.9m with the level of further consideration being dependent on an extensive valuation process. The initial proceeds will further enhance GPE's financial resources for acquisitions and selected developments. GPE has the right to re-acquire the site of 18/19 Hanover Square from Crossrail following the completion of the underground station works at a discount to the open market value at that time. The current buildings provided rental income of £2.7million per annum to GPE.
The acquired properties form part of GPE's major mixed use development proposals on the 1.3 acre prime site fronting Hanover Square and Bond Street in the heart of the West End. GPE and Crossrail are jointly working on the masterplan for the entire site and we anticipate progressing with a planning application in the first half of next year.