Qatari investor Al Faisal is acquiring the W London-Leicester Square hotel-led mixed use scheme for close to £200 mln (EUR 230 mln), reflecting a net initial yield slightly over 4%. The vendor is Northern Irish property group McAleer & Rushe.

Announcing the exchange of contracts for the sale, McAleer & Rushe did not identify the buyer.

The 192-bed W London is situated on the corner of Leicester Square and Wardour Street, on the site of the former Swiss Centre. In addition to the Starwood-operated hotel, the ten-storey building houses 11 luxury two and three-bedroom penthouse W Residencies and a 3,200 m2 M&M's World store, a first for Europe.

Developed and constructed by McAleer & Rushe and designed by Jestico + Whiles the scheme has won best UK development at international property show MIPIM, held in Cannes, and has been shortlisted for a number of other forthcoming prestigious architectural awards.

McAleer & Rushe's managing director Eamonn Laverty said: 'This has very much been a flagship, showcase development for McAleer & Rushe. We built a hotel that is instilled with the highest levels of design and exclusivity that one would expect of such a glamorous brand as W and on such a prominent site, on one of London’s most famous squares. We have also created one of the most exclusive branded apartment schemes in London, with the full benefit of catering and other services provided by the W Hotel. The funds raised will be reinvested in the business and will assist us in the pursuit of other development opportunities.'

Jones Lang LaSalle and Steerforth Partners advised on the sale.

Jon Hubbard, managing director for Jones Lang LaSalle Hotels added: 'London remains the focus for global capital and this sale reinforces the international appeal of London for real estate investors, recognising the long term strength of the London hotel market. The current lack of stock continues to drive competition for good quality assets.'

Incorporated in 1994, Al Faisal is a privately held diversified industry groups, owned by Qatari businessman, Sheikh Faisal Bin Qassim Al Thani. Following the W hotel acquisition, Al Faisal subsidiary, Al Rayan Tourism & Investment Company, owns 11 hotels in Qatar, Egypt and London. Seven of the hotels are fully operational and four under development.