The Earls Court headquarters of the Metropolitan Police's terrorism unit is close to being sold to the Mayor's Office for £240m, it has been reported.
Property industry magazine Property Week reported that Capco, which is currently in the process of a £12bn redevelopment of Earl's Court, is close to selling the Empress State Building to the Mayor's Office for Policing and Crime (Mopac), which has leased it since 1961.
In a statement this afternoon, Capco confirmed it was in talks with the Mayor's Office, saying it was considering a lease extension or the sale of the freehold of the building. It is thought if a transaction is agreed, a deal will be announced shortly after Capco's results next week.
The building had been slated to be converted into a residential tower containing 440 homes after Mopac's lease expires next year.
However, Capco has been mired in controversy over the regeneration of its 77-acre Earl's Court site, with activists accusing it of planning to sell off housing estates to a Saudi Arabian investor for £500m, which it denied.
Meanwhile, it has taken a hit from the falling value of luxury homes in the capital, cutting the value of the Earls Court scheme, which it hopes to build 7,500 homes on, twice in the past 18 months.