The former Post Office Savings Bank HQ in west London could be set for a major residential redevelopment as government chiefs weigh up its future.
The department for Culture, Media & Sport is understood to have appointed JLL to provide advice on the long-term options for Blythe House at 23 Blythe Road, W14.
The 400,000 sq ft listed block is used as storage and conservation space for the Victoria & Albert Museum, the Science Museum Group and the British Museum.
With a march on residential values in London, the development or conversion of Blythe House into new homes is being evaluated as one of the options to put on the table.
Savills predicts 24.4% house price growth in mainstream London over the next five years.
Sources said that Blythe House could have the potential for a residential scheme of as much as £400m.
A spokesman at DCMS said: “The government is assessing the use of properties across its estate, seeking to secure value for money.
“As part of this wider effort, DCMS is working with the Government Property Unit to assess the current use of Blythe House as government seeks to provide a long-term, cost-effective solution for museum storage and conservation facilities.”
One source said: “It is a great building in a great part of town. There would be strong investor interest in a residential development.”
Blythe House is in Hammersmith & Fulham borough, close to where Capital & Counties is working up plans for an £8bn mixed-use regeneration at Earls Court, SW6.
