Galliard Homes has sold a £100m scheme dubbed “mini-One Hyde Park” to concentrate on its new London strategy outside the West End.
In an off-market deal the house builder has sold the 27,190 sq ft 35 Old Queen Street, SW1, (pictured) to private company Old Queen Street Properties for £28.6m.
Planning permission was secured last May for a nine-storey Squire and Partners-designed 22 luxury-home development with a rooftop garden.
Residential values in excess of £3,000 per sq ft are expected to be secured for a number of the flats at the former European Council for Foreign Relations office block.
It originally provided grand mansion flats occupied by Westminster politicians and wealthy merchants, but was converted into offices after 1945.
Galliard bought the building for £21.5m in August 2013.
The disposal is part of a new strategy to move away from core Westminster and Mayfair and focus on the surrounding zones. Areas such as Vauxhall will be looked at for regeneration opportunities.
House builders have been impressed with Vauxhall values rising from £1,100 per sq ft to £1,400 per sq ft over 18 months.
Galliard teamed up with Cain Hoy Enterprises last November for a new joint venture to invest £225m in new residential projects in London and its surrounding commuter belt.
A 900-home scheme with Frogmore at 2 Millharbour, E14, was selected as the first project to be funded through the jv as it seeks to build a £1bn portfolio.
