These sales have been achieved after commencing construction only two months ago and are well in advance of any formal marketing. The apartments will be ready for occupation in summer 2004.
Known as No1 West India Quay, the £180 million ($261 million) development, comprising a 301-room hotel, 47 serviced apartments and a total of 158 apartments for sale, is being undertaken in joint venture with The Manhattan Loft Corporation. MWB owns 66% of the joint venture company.
The hotel and serviced apartment element has been pre-let to Marriott International through a 20 year operating and management agreement. Under the terms of the agreement MWB receives 90% of the hotel's operating profit with a minimum annual income of £4.1m in the first year after opening, rising each year thereafter. Ring-fenced stand-alone construction finance totalling £135 million ($196 million) is in place and provided by BHF Bank and Hamburgerische Landesbank.
The 72 pre-sales are for a mixture of one and two bedroom flats together with some of the duplex apartments at prices reflecting an average of £500 ($725) per sf. MWB estimates that sales of the remaining apartments should realise a further £70 million ($102 million).
This scheme represents the third phase of a highly successful 1 million-sf development at West India Quay. The first phase comprised 107 apartments together with a range of restaurants, bars and other leisure facilities created out of an extensive early 19th Century quayside warehouse building. All the apartments have been sold for £34 million ($49.3 million) while the leisure element, including the second phase of a multiplex cinema and parking, was fully let and sold in November 1999 for the same price.
MWB chief executive Richard Balfour-Lynn said: 'The pre-sales we have achieved not only reflect the quality and location of our scheme but also the continued buoyancy of the Docklands residential market. Serious interest is being expressed in the remaining apartments and with the hotel and serviced apartments already effectively pre-let, West India Quay is fast becoming one of our most successful developments.'
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