Two world-famous Whitehall buildings could be about to hit the market for sale or redevelopment as the government continues to slash its central London estate by 80% before 2020.
According to market observers, both 55 Whitehall and 3-8 Whitehall Place, both SW1, are emerging as the frontrunners to hit the market next.
Following the £360m recent sales of the Old War Office and Admiralty Arch, James Leaver, head of public sector consultancy at Knight Frank, thinks the most obvious buildings to next hit the market could be the Department of Energy and Climate Change building at 55 Whitehall, which links with 3-8 Whitehall Place SW1 (see below).
Leaver said: “Fifty-five Whitehall is right opposite the Old War Office and outside the secure zone. It’s a great location for an office or hotel. It appears that nothing is off limits for this government. If it’s been bold enough to sell the Old War Office and Admiralty Arch it could very comfortably extract value here.”
Deloitte partner Victoria Smith also believes 55 Whitehall to be a lead candidate for sale or redevelopment. “This is not a PFI building and there should be an opportunity to dispose of it in due course. It’s a trophy building in Whitehall and is likely to go for hotel or high-end retail redevelopment.”
According to the Government Property Unit’s (GPU) latest State of the Estate report, between 2010 and 2015 the government raised £1.4bn in capital receipts by vacating an average of one building per day, helping to reduce the size of its estate by the equivalent of 27 Buckingham Palaces and saving £625m.
55 Whitehall
Sale/development opportunity: Yes
Conversion? Yes. Possibly hotel or high-end retail
Tenure: Other
Size: 18,400 sq ft
Comment: Trophy building, home to Dept of Energy & Climate Change
3-8 Whitehall Place
Sale/development opportunity: Yes
Conversion? Yes. Offices or hotel
Tenure:
Leasehold size: 94,400 sq ft
Comment: This opportunity could link in with nearby 70 Whitehall
