The US embassy building in London’s Grosvenor Square, W1, has officially come to the market.
A statement released this morning from adviser Cushman & Wakefield confirmed the US department of state is offering the long leasehold interest in the 270,000 sq ft building for sale following its conditional decision to acquire a new site on the South Bank of the River Thames in London.
No guide price was included for the block -which could fetch up to £500m and is expected to be converted to residential use – although the statement adds that “subject to planning the prime location provides the opportunity to convert the premises to a variety of alternative uses”.
The lease, granted by freeholder the Grosvenor Estate in 1954, is for a term of 999 years with the rent fixed at one peppercorn per annum for the whole term.
The statement added: “The disposal of the embassy is integrally linked to the acquisition and development of the new site in Battersea and is dependent upon Congressional approval and securing the necessary planning permissions from the London Borough of Wandsworth.”
On 2 October 2008 the US government signed a conditional agreement with Irish property developer Ballymore to acquire a site in the Nine Elms Opportunity Area in Wandsworth for its new embassy.
The US government’s decision to acquire the Nine Elms site is “based on the need for a building that is modern in design, secure and environmentally sustainable and follows both a two-year search for a new location and a thorough review of options for the Grosvenor Square building.”
English Heritage is currently considering a request to list the Grosvenor Square building.
A report is expected to go to the secretary of state for culture, media and sport in the autumn and a decision is not expected until the new year.
Zoe Bignell, head of West End development at C&W, advising the US government on the sale, said: “This is a remarkable opportunity to acquire a unique site in an internationally renowned square in London’s most prestigious area.
“We are expecting interest from around the world and will be seeking a purchaser with the experience, expertise, financial capability and commitment to maximise the potential of the site.”
