Park House has been sold by property company Land Securities for £250 million.
The Oxford Street office building was purchased by Qatari developer Barwa Real Estate Co.
Barwa chairman Ghanim bin Saad Al Saad said: “The investment demonstrates our commitment to Europe as part of our growth strategy and signals our interest in strengthening our portfolio interests in London”.
According to the Economic Times, Robert Noel, managing director of Land Securities’ London portfolio, said: “Park House is the largest speculative development in Mayfair for a generation and this sale enables us to realise the majority of our profit ahead of schedule, with significantly reduced risk and with no capital employed”.
Land Securities will complete the development of the site opposite Selfridges before handing over the building to Barwa, which will pay £225 million immediately and £25 million once the project is finished.
Park House will contain 165,000 square feet of office space, 39 residential units and 90,000 square feet of shops, it was said earlier this year by the commercial property firm. The company announced in January that work on the development will be completed by 2012.
Other groups based in the Gulf have also shown an interest in the UK property market. Jadwa Investment recently bought King’s Reach Tower in a partnership with CIT for £60 million.