Arora Group acquires Queen Anne’s Mansions from Land Securities in one of the year’s biggest central London property deals
The Ministry of Justice’s headquarters in central London has been sold to billionaire developer Surinder Arora for £245 million, in a deal that underlines the recovery in the capital’s office investment market.
Arora Group bought Queen Anne’s Mansions, a 1970s-built brutalist office block near Buckingham Palace, from Land Securities, the FTSE 100 property giant.
The 14-storey building is fully leased to the Ministry until 2028 at an annual rent of £15 million. When the lease expires, Arora’s group is expected to pursue a major redevelopment, with industry insiders predicting a shift toward a luxury hotel in line with the group’s portfolio, which includes Fairmont Windsor Park, Luton Hoo, and the InterContinental at London’s O2.
“This acquisition underscores the Arora Group’s commitment to strategic investments in exceptional properties,” Arora said.
He added the redevelopment would “honour the site’s rich history while creating a modern, high-value asset for London” and pledged the project would also generate long-term jobs.
For Landsec, the sale forms part of a wider restructuring programme. Chief executive Mark Allan has pledged to sell up to £2 billion of what he calls “off-strategy” offices, channelling proceeds into the construction of thousands of build-to-rent flats.
“This sale provides strong evidence of the continuing recovery in the central London investment market and allows us to crystallise a full value for this off-strategy asset much sooner than we had envisaged,” Allan said.
Analysts said Landsec had achieved an “attractive” price. Bjorn Zietsman of Panmure Liberum noted it was “ahead of typical office valuations”, while Stifel’s Denese Newton described it as “materially stronger than pricing achievable for conventional office use.”
London’s office investment market has been sluggish since 2022 as higher interest rates squeezed financing and depressed valuations. However, with borrowing costs easing and long-term demand stabilising, agents have reported increased activity in recent months.
Built by Landsec in the 1970s, Queen Anne’s Mansions has been a flagship tenancy for the MoJ. The department effectively pays closer to £32 million a year, factoring in upgrade costs since the mid-2000s. Landsec had already warned that once the Ministry vacates, the block would require substantial redevelopment to remain viable for offices or any other use.
Arora Group has paid a 10% deposit, with completion expected in December. The transaction takes Landsec’s office disposals since March to £500 million.
The move is among the clearest signs yet that international capital and domestic investors see renewed value in London’s prime property market.
