The Macdonald House, which is home to Canada's High Commission, in Mayfair, London, has been sold to the Lodha Group, an Indian real estate firm for $501 million, according to several news reports.
The Canadian government decided to sell the building in order to save on operating costs. The administration will move all operations to the Canada House in Trafalgar Square, London, the High Commission said in a statement, reports Bloomberg.
Gordon Campbell, Canada's High Commissioner to the U.K. confirmed news of the sale Thursday night. According to the Business Standard, Lodha Group has paid only 10 percent of the total amount, and will pay the rest by the end of January 2014. The deal is slated to close by March 2014.
"We thank Lodha Group for their keen interest and welcome this new phase in the project," Campbell said in a statement, reports India Today.
The Macdonald House is one of the most important properties on Grosvenor Street. The 150,000 square feet, seven story building has been home to the Canadian Commissioner since 1960. The government had announced that it intended on selling the building sometime in February 2013. The building generated a lot of interest from around the world.
According to The Guardian, about 20 international bids had poured in for the property.
"It is rare by definition because it is on a beautiful garden square in Mayfair in probably the world's number 1 city. So when they do come up people are very keen to secure them," Simon Stone, director of national development at Savills Plc, the company that represented the Canadian government in the deal, told the publication.
Apparently, the Lodha Group was the only Indian firm bidding for the building. This is the company's first international project. The firm is very happy with the acquisition. It reportedly plans on converting the area into a residential development.
"The acquisition of this marquee asset overlooking London's most renowned garden square, in the heart of Mayfair and in close proximity to Bond Street and Mount Street, is a great opportunity for our company," Abhishek Lodha, managing director of Lodha said in the statement.
In the past year, more than 20 diplomat-owned properties have sold. Foreign embassies are reportedly vacating London's major areas like Mayfair and Kensington for security reasons, reports FirstPost.com. Apparently, about six properties on the famous Grosvenor Square have been sold to Indian property players.
"1 Grosvenor Square is the best address in the world and we will create a world class development which befits the status of this address," Abhishek Lodha told the Guardian.
Bonus Fact (Courtesy: Guardian): Grosvenor Street is a very old London landmark. It has been immortalized in Jane Austen's Pride and Prejudice, where the snobbish Ms. Bingley says:
"We are a long way from Grosvenor Square, are we not Mr Darcy."
