The company may convert the office building near Waterloo Station into a hotel.
PPHE Hotel Group plc (AIM:PPH) (formerly Park Plaza Hotels), controlled by Eli Papouchado through Yam Suf Group, has bought London's Hercules House, located near Waterloo Station, for £23.5 million in cash from the property's received. The deal is due to be closed in October.
The 133,203-square foot office building is leased to the Department of Communities and Local Government, which will terminate its lease in September. PPHE is considering either keeping the property as an office building, or converting to a hotel. Hercules House is close to several of the company's hotels: Park Plaza Westminster Bridge, Park Plaza County Hall and Park Plaza Riverbank.
Converting Hercules House will require planning permission, and would also be subject to prevailing market conditions. Until a decision is made, the company will try to generate income from the property by short term leases.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2013
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