Global law firm Ashurst has advised investment manager Invesco Real Estate and development manager Yard Nine on the sale and forward fund of 40 Eastbourne Terrace to Universities Superannuation Scheme Limited at a price of £143 million.

Invesco Real Estate will remain connected to the site as the developer to deliver a new 366-bedroom hotel and restaurant as part of the mixed-use development, led by the property development and asset management company YardNine.

RX London and Ashurst acted for Invesco Real Estate and JLL and DLA Piper acted for USS.

Mark Younger, Director of YardNine commented: “The progress we have made at 40 and 50 Eastbourne Terrace since acquisition – physically separating the buildings, securing vacant possession, achieving planning consent for both the hotel and an additional floor on 50 Eastbourne Terrace, pre-letting the hotel to an outstanding hotel operator and securing funding for 40 in just three and a half years – is a testament to the hard work of all involved, particularly during a global pandemic. We are now just weeks away from completing Fifty Paddington, our office development at 50 Eastbourne Terrace, and look forward to seeing our ambitious plans for 40 Eastbourne Terrace starting to take shape.”

Richard Chambers, Senior Director – Fund Management, Europe at Invesco Real Estate, added: “We are delighted to be able to realise the efforts of the work and commitment by our teams over the past three-and-a-half years on this exciting project. The attributes speak for themselves: attractive long income prospects, a strong brand and operator together with outstanding underlying real estate fundamentals have combined to enable us to successfully deliver on the strategy for our client, in spite of the pandemic.

“Working with YardNine, we look forward to delivering what we believe will be a notable hotel scheme for Whitbread, a strong investment for USS and a great amenity for Paddington, sitting alongside our landmark office development, Fifty Paddington at Eastbourne Terrace.”