Plans to turn Great Scotland Yard, Whitehall, into a luxury hotel have attracted MENA buyers. Sovereign wealth funds from Kuwait and Qatar are in talks with a London developer over the acquisition of the original Scotland Yard headquarters, which is being transformed into a £10,000-a-night luxury hotel. The Galliard Group confirmed to The Telegraph that its chief executive, Stephen Conway, has met individuals from the MENA over the last few months, who have shown interest in buying the historic building once construction has been completed in 2016, thought to be worth £200m. “We are currently in discussions with representatives of sovereign wealth funds and ultra high net worth, private investors from the Gulf states, including Qatar and Kuwait. The Gulf investors see Whitehall buildings such as great Scotland Yard as AAA investments that will grow in value over the long term and are a good diversification away from their traditional oil and gas sector holdings,” said Mr Conway. “We cannot disclose any further details at this time due to confidentiality requirements built into the negotiations,” said a spokesman. A potential deal with one of these interested parties would be the next in a string of Middle Eastern acquisitions of trophy assets in London, following the Qatari Investment Authority’s investment in the Shard of Glass – Europe’s tallest building.
The sovereign wealth fund also owns the department store Harrods.Galliard, the largest private housebuilder in the capital, purchased the Edwardian, grade II-listed site, which was once home to Scotland Yard and then the Ministry of Defence, in December 2013, with the intention of transforming it into a luxury hotel. Galliard’s construction project, which began in January and is also funded by The Crown Estate, is estimated to cost £50m and will run for 26 weeks. Plans for the seven-floor building, which featured in the 2007 film Atonement, with Keira Knightley and James McAvoy, include 235 bedrooms, a VIP suite, a vast ballroom and a high end restaurant. This development is part of the transformation of government buildings in Whitehall to residential and leisure addresses. The Corinthia Hotel on Whitehall Place was a former political stronghold, and Admiralty Arch on The Mall is also being converted into a hotel. The London hospitality scene is attracting foreign investment due to its occupancy rates, which are among the highest in the world at 81pc, compared with 79pc for Dubai and 78pc for Paris. “Despite a spate of high profile openings, there also remains an undersupply of five-star hotel accommodation in Whitehall and Westminster. Of the supply growth since 2005, only 14pc of new rooms and suites have been high end accommodation, the rest has been budget or 3/4 star rooms,” said central London property agent Peter Wetherell.
The sovereign wealth fund also owns the department store Harrods.Galliard, the largest private housebuilder in the capital, purchased the Edwardian, grade II-listed site, which was once home to Scotland Yard and then the Ministry of Defence, in December 2013, with the intention of transforming it into a luxury hotel. Galliard’s construction project, which began in January and is also funded by The Crown Estate, is estimated to cost £50m and will run for 26 weeks. Plans for the seven-floor building, which featured in the 2007 film Atonement, with Keira Knightley and James McAvoy, include 235 bedrooms, a VIP suite, a vast ballroom and a high end restaurant. This development is part of the transformation of government buildings in Whitehall to residential and leisure addresses. The Corinthia Hotel on Whitehall Place was a former political stronghold, and Admiralty Arch on The Mall is also being converted into a hotel. The London hospitality scene is attracting foreign investment due to its occupancy rates, which are among the highest in the world at 81pc, compared with 79pc for Dubai and 78pc for Paris. “Despite a spate of high profile openings, there also remains an undersupply of five-star hotel accommodation in Whitehall and Westminster. Of the supply growth since 2005, only 14pc of new rooms and suites have been high end accommodation, the rest has been budget or 3/4 star rooms,” said central London property agent Peter Wetherell.
