The government is accelerating its plans to relocate civil servants as it announces plans to close 11 government buildings in London.
It has specifically identified the Ministry of Justice’s offices at Landsec’s 102 Petty France, SW1, and the Department for Health’s offices at 39 Victoria Street, SW1, for closure.
Caxton House, the home of the Department for Work and Pensions at 6-12 Tothill Street, SW1, is also scheduled for closure in 2026.
The news follows the closure of Windsor House at 50 Victoria Street, SW1, and Albany House, 86 Petty France, SW1, announced at the end of last year, which together enabled the relocation of 1,700 civil servants.
Earlier last year, the government also announced the closure of the 323,000 sq ft 1 Victoria Street, SW1, in January 2024, as it sought to pursue its aim of reducing its central London estate by 55%.
Rupert Palmer, deputy director of capital projects in London for the Whitehall Campus Programme, said the programme would “see a reduction from 84 buildings to around 20 buildings across London, which is currently planned to accommodate 40,000 civil servants by 2030.”
This would release more than 3.3m sq ft of space in the capital, Palmer said. Some investors are already seeing this as an opportunity. Earlier this year, Mitsubishi Estate London brought its freehold interest in 70 Petty France, SW1, for £70m.
The 92,010 sq ft block has long been occupied by government bodies but is now being marketed as opportunity for investment ahead of the Secretary of State for Communities and Local Government departure in September 2025.
Landsec has previously tried to sell the Ministry of Justice-occupied 102 Petty France, having brought the asset to market for £500m in 2021. Now, following the company’s announced pivot away from central London offices, investors are speculating as to whether the company will bring the block to market again.
Additional stock would be welcome in the stock-starved West End office investment market, where bidding processes have become increasingly competitive.
Image: © LCA PR
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