Canada hired a broker to sell its diplomatic premises in London’s Mayfair district to combine its ambassadorial properties in the U.K. capital and take advantage of booming demand for luxury homes and hotels.
The Canadian High Commission will sell the site and consolidate its diplomatic work in the U.K. at Canada House on Trafalgar Square, broker Savills Plc (SVS) said today in an e-mailed statement. The property on Grosvenor Square is valued at about 250 million pounds ($390 million), according to a person with knowledge of the sale process who asked not to be identified because the information isn’t public.
“We expect interest from all over the world, with both the hotel and residential sectors vying for this prime Mayfair destination,” Tim Whitmey, a director at London-based Savills, said in the statement.
The Canadians are following the Greek, Dutch and U.S. governments, which have all offered diplomatic sites in west London for sale. The U.S. government is relocation its embassy to south London from Grosvenor Square. The Canadian High Commission building at 1 Grosvenor Square was the U.S. Embassy in London from 1938 to 1960.
Luxury-home values in neighborhoods such as Mayfair, Knightsbridge and Chelsea will climb 6 percent in 2013, fueled by demand from overseas investors and a weakened pound, Jones Lang LaSalle Inc. said on Aug. 2.
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