Land Securities has agreed to sell a London office used by the Ministry of Justice for £245 million to the company owned by billionaire hotel tycoon Surinder Arora.
Arora Group will buy Queen Anne’s Mansions amid the “recovery” of central London’s property market.
Land Securities (Landsec) said the sale forms part of its plans to raise £2 billion from its portfolio of offices by 2030 to focus on the more profitable areas of its business.
Chief executive Mark Allan said the sale “provides strong evidence of the continuing recovery in the central London investment market”.
The historic building, which was previously a block of flats, is currently let to the Ministry of Justice.
This lease will expire in December 2028, at which point it will be in need of significant refurbishment having been developed in the 1970s, Landsec said.
The sale comes after Mr Arora recently submitted plans for a third runway at Heathrow, rivalling that of the airport’s owners.
The proposals involve a shorter runway which would mean the M25 motorway does not need to be diverted.
Arora Group’s plan has a cost estimate of under £25 billion, not including the redevelopment of the airport’s existing central area.
Arora Group specialises in property, construction and hotel management, and is one of the largest landowners at Heathrow.
The sale of Queen Anne’s Mansions is expected to complete in December this year.
