Sector - Defence
Old War Office, Whitehall sold by the MOD
The Ministry of Defence has completed the sale of the Old War Office, Whitehall for in excess of £350M.
The Old War Office, Whitehall has been sold to the Hinduja Group in partnership with OHL Developments whose main shareholder is Grupo Villar Mir, one of the largest private Spanish industrial groups.
The property marketed as 57 Whitehall, covers 580,000 sq ft, and was sold for £350M on a long lease arrangement to the joint venture following a competitive marketing process.
The Grade II* Listed Building, completed in 1906, contains around 1,100 rooms across 7 floors, linked by more than 2 miles of corridors.
Working collaboratively with the purchasers, the building will be restored, redeveloped and re-imagined as a high quality hotel and residential apartments.
The Defence Infrastructure Organisation (DIO), which is responsible for managing and maintaining land and property on behalf of the MOD, appointed Bilfinger GVA to market the building after it was declared surplus to Defence.
An estimated £8-10M per year in running costs will be saved by the department as a result of the sale.
Defence Minister, Mark Lancaster MP said: “I am delighted to complete the sale of the Old War Office. The building has played an important part in our country’s history and presents a unique redevelopment opportunity in an unrivalled location in the heart of Westminster. The sale reflects our aim of achieving a rationalised defence estate to more appropriately meet the needs of our armed forces and the 250 year lease will ensure the heritage and security of the building for many years to come.”
The sale aligns with the MOD’s Footprint Strategy which aims to create a smaller but significantly better defence estate that will support the armed forces well into the future.
The MOD has worked closely with the purchasers, Historic England and other government stakeholders throughout the process.
More Defence News
- International cyber attack could yet see more cases
15 May 17
Firms across all sectors hit, with SMEs being particularly vulnerable.
- Military drone contracts up for grabs
20 Apr 17
The Ministry of Defence is looking for companies to apply for a share of £3M
- DIO award £90M communications centre contract
22 Mar 17
Construction is due to begin next month with completion anticipated by January 2019.