A site that could be home to the US Embassy will be brought back to the market this summer.
The Ministry of Defence has just appointed Drivers Jonas to market the 12.8-acre site between Sloane Square and the River Thames, following a tender through the Official Journal for the European Union.
The agent said Chelsea Barracks, which was bombed by the IRA in 1981, had already drawn interest from some of the world’s wealthiest individuals and leading UK developers.
Last valued by the Treasury’s National Asset Register in 2001 at around £58.5m, it is expected to sell for more than £250m.
The US Embassy could be among the bidders. Four years ago Chelsea Barracks topped a shortlist of four potential relocation sites for the embassy, advised by Colliers CRE.
Its 225,000 sq ft home on the entire west side of Grosvenor Square, W1, is the only embassy in the world that the US government does not own.
DJ partner Jon Milward said the barracks could accommodate a variety of propositions.
“Considered as a straightforward central London redevelopment, the obvious land use will be residential, although we do not rule out retail, aparthotel or top-end hotels,” he said.
Grosvenor and residential developer Candy & Candy are considering bids, as is Berkeley, which bid for the failed private finance initiative proposals for the site.
Secretary of state for defence John Reid said last September that the barracks would be sold instead, with its 300 ceremonial personnel moved to Woolwich Station in London.
The disposal forms part of a major MOD rationalisation programme.
The sale process will start once updated planning policy guidance is agreed with the City of Westminster.
Vacant possession is scheduled for March 2008.
GVA Grimley is supporting DJ in planning discussions.
References: EGi News 06/03/06
