Ministry of Justice Headquarters Sold to Billionaire Developer in Landmark Deal

The headquarters of the Ministry of Justice in central London have been acquired for £245 million by billionaire developer Surinder Arora. The iconic brutalist building, Queen Anne’s Mansions, located near Buckingham Palace, was sold by FTSE 100 landlord Land Securities as part of its wider commercial vision.

The fourteen-storey structure is currently let in its entirety to the Ministry, which is expected to vacate the premises in 2028 when its £15 million annual lease expires. Upon the Ministry’s departure, Arora Group has signalled plans to explore all potential redevelopment options. Industry observers anticipate the transformation of the block into a luxury hotel, given Arora’s impressive hospitality portfolio featuring properties such as Luton Hoo, Fairmont Windsor Park, and the InterContinental at the O2 in London.

Surinder Arora described the move as a strategic investment in an “exceptional property,” affirming that the redevelopment will respect the site’s history while creating significant value for London. He also emphasised the group’s commitment to generating long-term employment and investing in the UK economy through more than just construction and property transactions.

Real estate analysts believe the £245 million price tag represents an attractive deal for Land Securities, suggesting the figure significantly exceeds estimates for continued office use. The sale is particularly notable against a backdrop of subdued transaction volumes for large London offices, attributed in part to the higher cost of finance in recent years. With interest rates beginning to recede, market activity is showing signs of renewed momentum and optimism.

Queen Anne’s Mansions was developed by Land Securities in the 1970s and has been leased to the Ministry since. While the headline rent is £15 million annually, the Ministry has contributed around £32 million per year since the mid-2000s due to upgrade works funded by the landlord. Once vacant, the building will require extensive redevelopment to be suitable for modern office or alternative uses.

Land Securities has now disposed of £500 million worth of “off-strategy” office assets since March, using the proceeds to execute a pivot towards residential rental property development. The firm aims to offload up to £2 billion of older offices, with a focus on building thousands of rental flats to secure greater long-term returns with reduced risk.