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LONDON-Land Securities has raised £157 million ($240 million) from the sale of the London Hilton hotel into a joint venture with London and Regional Properties. The London Hilton is one of London’s top hotels. It is a 5-star 446-bedroom conference hotel with full facilities in a prominent 29-storey tower in a prime location on Park Lane in Mayfair.

Unusually for a building in Mayfair, the London Hilton is freehold. It is let to Hilton International Hotels until December 2033 at a current rent of about £8.1 million ($12.4 million) per annum reviewable annually in line with retail prices index and with open market reviews at December 2007 and then every eight years.

London and Regional holds a controlling interest in the new joint venture and will manage the property. Insignia Hotels advised London & Regional.

Mark Collins, Chief Executive of Land Securities Portfolio Management, explained the decision to relinquish control of this trophy asset: “We have owned the London Hilton, a significant landmark building in Mayfair, for many years and during this time through various lease re-structures, achieved significant added value from this property,” he said. “However, it no longer sits within our core areas of activity and we believe the time is right for us to release equity from this investment.

The sale came as Land Securities shareholders voted by an overwhelming majority in favour of a plan to return more than £500 million ($765 million) to shareholders.

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