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Urvasco's mothballed Strand scheme in receivership

A stalled hotel project on the Strand, central London, has been put into receivership after months of inactivity and legal disputes.

PricewaterhouseCoopers has been appointed to handle the £25 million project at 336-337 Strand, which was being developed by Spanish firm Urvasco, a subsidiary of Grupo Hotelero Urvasco.

PwC partner and joint fixed charge receiver Mark Shires said: “Urvasco was formed to progress the development of a 5-star hotel and 79 luxury apartments on the site of a listed building. The hotel was intended to be managed by the company under the Silken hotel brand, and the apartments were being developed for sale.”

But the scheme, on the site of the former Marconi Building and later Citibank House, was put on hold late last year when subcontractors were stood down from the works.

PwC specialist real estate and construction partner Barry Gilbertson said: “As work on the construction of the site stopped in late 2008, our first task is to take stock of the part-built construction, to understand the quality and condition of the structure, which may have deteriorated after being exposed to the weather through last winter.

“Following this, we will carry out significant due diligence to put together a detailed information memorandum for sale.

“If the green shoots of recovery really are pushing up through the streets of tourist London, then we expect that there will be very strong demand to take over this development to build out the hotel.”

He said rumours that Urvasco had entered administration were not correct.