Land Securities has agreed to sell Queen Anne’s Mansions, the Westminster office currently occupied by the Ministry of Justice, to the Arora Group for £245 million in a deal that underlines both a shift in Landsec’s portfolio strategy and the continued interest of private investors in central London real estate.

According to Landsec, the disposal is part of a wider plan to extract £2 billion from its office holdings by 2030 so the group can redeploy capital into higher‑return parts of its business. Landsec chief executive Mark Allan said the sale “provides strong evidence of the continuing recovery in the central London investment market”, a comment the company attached to the announcement of the transaction.

The group’s regulatory filing confirms contracts have been exchanged on an unconditional basis and that the buyer has paid a 10 per cent non‑refundable deposit. The RNS states the transaction will be immediately accretive to Landsec’s return on equity and that completion is expected in early December 2025, subject to customary conditions.

Queen Anne’s Mansions is a substantial asset: the 1970s development comprises some 353,000 sq ft and was originally a block of flats before being converted. It is currently fully let to the Ministry of Justice under a lease that runs until December 2028. Landsec has warned that, once the tenancy expires, the building will require significant refurbishment — a factor that will shape the new owner’s business plan and the asset’s medium‑term return profile.

The purchaser, the Arora Group, is controlled by hotel entrepreneur Surinder Arora and has long been a major landowner around Heathrow Airport. The company describes itself as a specialist in property, construction and hotel management; industry reporting has connected Arora’s wider ambitions to its interest in central London assets and in airport‑related development opportunities.

Those airport ambitions have been made explicit: the Arora Group has submitted a competing proposal for Heathrow expansion, branded Heathrow West, which it says was developed with engineering partner Bechtel. According to the company’s statement, the scheme envisages a shorter, 2.8km runway designed to avoid the need to divert the M25, a phased new Terminal 6 with staged openings and an overall cost estimate below £25 billion. The Arora Group says the approach would cut complexity, cost and environmental impact compared with larger alternatives; industry reporting notes the proposal sits among several rival bids and that independent quantity surveyors ran the costings for the submission.

Taken together, the deal and Arora’s public proposals sketch the strategic logic behind the purchase: a cash‑generative central London asset with an in‑place public sector tenant until the end of 2028, and an owner that has both the balance sheet and the airport‑related interests to contemplate longer‑term redevelopment or repositioning. Landsec’s statement that the disposal is accretive to shareholder returns reflects a broader repositioning across the listed landlord sector as firms shed less favoured office stock.

That said, the outcome is not predetermined. The tenant expiry, the scale of the required refurbishment and planning realities mean the ultimate use and value of Queen Anne’s Mansions will depend on how Arora chooses to invest and whether any redevelopment plans secure the necessary consents. Separately, any move to pursue a Heathrow expansion concept would have to clear a complex approvals process and compete with other industry bids — points the company itself acknowledged when it said its proposal would be formally presented to government in due course.

For now, the sale is due to complete in early December 2025 and the Ministry of Justice remains the tenant until December 2028; whether Arora turns the acquisition into a refurbishment, a repositioning or a longer‑term hold will be among the next tests of both its Heathrow ambitions and of central London’s resilience as an investment market.

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Source: Noah Wire Services