For some time now, the London commercial property market has bucked the trend by increasing in value at a time when prices have been falling elsewhere. Thanks to international businesses and investors scrabbling for a foothold in the UK’s capital city, commercial space in prime locations can reach prices of up to £2,000 per sq ft.
Canada House will undergo extensive renovation
In other words, anyone looking to sell a large property in one of London’s many prime locations is in for something of a windfall – a fact which is bound to bring a smile to the faces of Canadian officials. The federal government of the country is looking to sell its High Commission offices and residence to raise funds for Canada House, attaching a price tag expected to be around the £150 million mark for the 135,000 sq ft property.
The building, known as Macdonald House, boasts five floors of offices, conference suites and residential space and is located in one of the choicest areas of London. Situated just off Grosvenor Square in Mayfair, it is perfectly placed to take advantage of public transport links and the bustle of life in the city centre.
Macdonald House was previously placed on the market by the Canadian government in 2008, yet thanks to the financial downturn only a few weeks later an abrupt change of heart occurred. This could prove to have been an immensely clever move as property prices in Mayfair have climbed by around 30 per cent in only five years, meaning that if a successful buyer is found the federal government will receive a greater return in their investment.
Director of residential research at Savills, Lucian Cook, believes that investors will be rushing to register their interest in the property thanks to the pedigree that comes with its location.
He says; “There are relatively few locations which tick the boxes like Grosvenor Square, and there is clearly something of a premium for a location such as that.”
Certainly, the Canadian government will be hoping that a sale can be negotiated sooner rather than later as work to extend facilities at Canada House has already begun. An office building next to the historic property on Trafalgar Square has already been purchased for a rumoured sum of $100 million and will be used to house the 250 staff being transferred from the current High Commission.
Canada House itself will also undergo extensive renovations, including a process to integrate it with the new acquisition to the federal government’s property portfolio. The whole project is expected to take around 18 months, but a further property will need to be found for the High Commissioner in that time frame as Canada House will not incorporate residential space.
