by Brianna Crandall — November 9, 2012—The British Government has just announced the lease of London’s landmark Admiralty Arch to Prime Investors Capital Limited (PIC) for 99 years. The building, which is currently not being used and is costing £900,000 a year to run, will remain in the ultimate control of taxpayers, as the government has retained the freehold of the property. The deal will raise £60 million for taxpayers, and marks the beginning of one of the largest and most exciting restoration projects in recent years, says the Cabinet Office.
London-based PIC, selected following a competitive bid process, has assembled a team of British specialist companies and consultants to undertake the sensitive restoration of the Grade-I listed historic building to the designs of its original architect, Sir Aston Webb, including reinstating many lost features from his original drawings. The external appearance of the prominent London landmark will be left almost unchanged, says the group.
Admiralty Arch was commissioned by King Edward VII in memory of his mother, the late Queen Victoria, and was completed in 1912. Its purpose was to provide a ceremonial passage from Trafalgar Square towards Buckingham Palace. Although it originally housed offices and residences for the Sea Lords of the Admiralty, Admiralty Arch is currently empty and has never before been open to the public. It requires extensive restoration and is not suitable for a modern office, notes the Cabinet Office.
PIC and its partners will work in collaboration with Westminster City Council, English Heritage, The Royal Parks and local stakeholders to transform the historic property into a landmark hotel, opening the building up to the public, including through restaurant and bar areas.
PIC CEO Rafael Serrano says the company is “committed to preserving the iconic status of Admiralty Arch and celebrating Sir Aston Webb’s historic design, while restoring, modernizing and adapting it sensitively for a new use that will sustain its value for future generations.” According to Serrano, PIC will “deliver the very finest hotel for London, with an unrivalled history and location, while providing maximum security measures to protect surrounding government buildings and areas of state importance.”
Minister for the Cabinet Office Francis Maude said the deal is part of the U.K. Government’s new strategy to manage its property estate, which has reportedly helped generate more than £640 million of savings since the general election in 2010. As of September 30, 2012, the government had exited 1,070 unused or unnecessary buildings. The approach also includes questioning each and every lease break before it gets extended.
