New Delhi: Indiabulls Real Estate has received approval from a UK authority for the plan to redevelop its project in London.


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Last year, the company had entered the London market with acquisition of 22, Hanover Square in Mayfair, Central London, a 87,444 sq ft commercial property for Rs 1,630 crore.


The "planning permission" for 22, Hanover Square was granted by the authorities yesterday.


In a filing to the BSE, Indiabulls Real Estate said that "Westminster City Council, on October 20, 2015, has approved the planning permission for redevelopment of 22 Hanover Square, which is being developed by a wholly owned subsidiary of the company."


The redevelopment scheme comprises of 41 apartments with 80,000 sq ft, 51 hotel rooms with 30,000 sq ft of leisure facilities and 4,500 sq ft retail and restaurant space facing onto Hanover Square, it added.


"International property consultants, CBRE, have pegged the residual market price of the 22, Hanover Square asset at GBP 230 million. Appreciation of 48 percent on the acquisition investment of GBP 155 million, in one year," the company said in an analyst presentation.


In June last year, Indiabulls Real Estate had announced the acquisition. The property was purchased from Scottish Widows Investment Partnership (now part of Aberdeen Asset Management).


"As part of change of policy from September 2015, Westminster City Council will not allow change of use from office to residential unless in exceptional circumstances.


"On this basis, the planning permission at 22 Hanover Square is very valuable, being the last remaining major residential scheme approved in Mayfair and London?s West End," the Mumbai-based developer said.