UK Ministry of Justice Headquarters Sold for £245 Million

Land Securities has confirmed the sale of Queen Anne’s Mansions, a prominent office building in central London currently occupied by the Ministry of Justice, for £245 million. The buyer is Arora Group, the property and hospitality company led by billionaire hotelier Surinder Arora.

A Transaction Reflecting Market Recovery

The acquisition comes at a time when London’s commercial real estate sector is showing signs of recovery. Prime assets, particularly those with strong tenants, continue to attract significant interest from investors looking for long-term opportunities in the capital.

Landsec’s Strategic Repositioning

For Land Securities, this disposal is not merely about capitalising on demand. The company has outlined an ambition to recycle £2 billion from its office portfolio by 2030, aiming to reinvest into higher-margin areas of the business. The sale of Queen Anne’s Mansions aligns with this broader strategy of sharpening focus and improving overall returns.

Historical Building with Upcoming Challenges

Originally developed in the 1970s as residential flats, Queen Anne’s Mansions later transitioned into office space and has been leased to the Ministry of Justice. However, with the current lease set to expire in December 2028, the property will require substantial refurbishment to remain competitive in the market, presenting both a challenge and an opportunity for its new owners.

Surinder Arora’s Expanding Influence

The purchase adds to the growing property portfolio of Surinder Arora, who has built a reputation not only in the hospitality industry but also as a major player in strategic real estate investments. His group already has significant exposure to high-profile assets, particularly around Heathrow, where it is one of the airport’s largest landowners.

Heathrow Expansion Proposals

The acquisition comes shortly after Arora submitted alternative plans for a third runway at Heathrow, directly competing with proposals from the airport’s existing owners. His version suggests a shorter runway that avoids diverting the M25 motorway, offering a potentially less disruptive and more cost-efficient solution with an estimated price tag of under £25 billion, excluding central redevelopment.

Completion Timeline

The sale of Queen Anne’s Mansions is expected to formally complete in December, marking another significant chapter in both Landsec’s repositioning efforts and Arora Group’s strategic expansion across London and the wider UK property market.