London building sold to ABIL Group for hotel development

5 Strand, London, UK. Photo credit: Alchemi Group(Image: Alchemi Group)

Indian real estate developer ABIL Group has made its first investment in the UK–a retail and office building at 5 Strand in Central London–according to the latest report from Savills.

The developer acquired the building in a transaction with BlackRock UK Property Fund worth more than £90 million. Savills purchased the property on ABIL's behalf while Cushman & Wakefield and Tudor Toone advised BlackRock on the property sale.  

The building was marketed with plans to convert the property into a 200-room hotel designed by US-based architectural firm Adjaye Associates. The purchase comes with planning permission to construct a new 152,400 square-foot development, a 61,670 square-foot office space, 5,376 square-foot retail space and 38,941 square-foot residential housing. The Westminster City Council and UK-based pharmacy chain Boots currently rent the 72,359 square-foot building. 

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.


“The London hotel market continues to attract a wide range of overseas investors with the city providing attractive long-term income prospects. As the first purchase for our client, 5 Strand makes an excellent choice providing the opportunity to create a leading purpose-built hotel l in a tourist location that is recognizable to a global audience,” Gary Witham, director in the hotels team at a Savills, said in a statement.

Data from Savills shows that overseas investment into hotels in London reached £1.06 billion in 2017, increasing 17.7 percent from 2016. Institutional capital investment into hotels also grew 6.8 percent to £370.7 million in 2017, recording the highest level of investment from this buyer type for over 10 years.