HSH in JV to Develop First Peninsula Hotel in London

Grosvenor and The Hongkong and Shanghai Hotels have agreed terms to enter into, upon completion of HSH's purchase of a 50% interest in 1-5 Grosvenor Place, SW1 in London, United Kingdom, a 50:50 joint venture partnership that seeks to redevelop the site.

The newly formed partnership will redevelop the 1.5 acre site opposite the gardens of Buckingham Palace and overlooking Hyde Park into a mixed use scheme incorporating HSH's first hotel in the UK -- The Peninsula London.

Mr. Clement K.M. Kwok, Managing Director and Chief Executive Officer of HSH, said, "London is one of the world's most important financial centres and a key international gateway city for business tourism. This project is consistent with our group's long term strategy, representing our desire to further expand in Europe."

Mr. Peter Vernon, Chief Executive Officer of Grosvenor Britain and Ireland, added, "We're incredibly excited to be working in partnership with Asia's longest standing hotel operator whose expertise will be invaluable to delivering an exceptional scheme in such a prominent location in central London."

The partnership will be formed following HSH's acquisition of Derwent London's 50% leasehold interest in the site for GBP132.5 million (approximately HK$1,564 million, exclusive of value added tax and other applicable taxes).