The land formerly occupied by the Middlesex Hospital in London’s Fitzrovia is to be placed on the market. The 12,000 square metre site has stood unused for over two years, since the hospital was demolished. The current owners, the government-backed Icelandic bank Kaupthing, hope that it will sell for more than £100 million.
This means that the bank will make a substantial loss on the land, which was originally bought for around £175 million by the Candy brothers, who intended to create a £1 billion development of luxury residential and high-class office space. That scheme is no longer considered viable under present economic conditions.
Kaupthing originally loaned the Candy brothers £220 million to redevelop the area, known as Noho Square. The loan was scheduled to run to 2011 but Kaupthing ended up owning the land when the market took a turn for the worse and the bank was nationalised, leading to intense disputes with the brothers.
Image: Flickr (Matthew Byrne)