The plans by developer Prime Investors Capital (PIC) include the creation of a five star 100-bedroom hotel, a private members club as well as one 1,566 square metre flat with a separate entrance. The developer will make a £600,000 contribution towards the Council's affordable housing fund.
The landmark building, which was completed in 1911, was originally designed as a ceremonial passage from Trafalgar Square to Buckingham Palace. It underwent refurbishment in 2000 and has until recently been occupied by the Cabinet Office.
The Cabinet Office said in a statement that the plans were part of a wider strategy to operate a more efficient Government estate. It said that a 99 year lease agreement signed between HM Government and PIC in October 2012 will raise an additional £60 million from the sale of Admiralty Arch’s leasehold, as well as creating jobs within the regeneration project.
"The plans will breathe new life into Admiralty Arch, transforming it from unsuitable office space into a publicly accessible landmark that everyone can admire and enjoy," said Cabinet Office Minister Francis Maude.
"Hard-working families rightly expect us to make the most of what we own; historical and architecturally significant buildings like the Arch shouldn’t be sitting empty in the government’s estate wasting £900,000 a year to run. Instead we’re raising £60 million for the taxpayer and working closely on every aspect with PIC, Westminster City Council and English Heritage to restore it to its former glory."
"Retaining the building’s freehold will mean that the public will always have a say in its future and this restoration project will create jobs, boost the local economy and help reduce the deficit," Maude added.
Construction on the site is expected to start next year and the hotel is expected to open in 2016.
