Developers in scramble to get hands on site of US Embassy

DEVELOPERS are already lining up to buy the US Embassy in Grosvenor Square, even though the Americans will not vacate the site for five years.

The first to reveal designs on the building did so within hours of the American ambassador's announcement that his government had signed a tentative agreement to acquire a site for a new embassy at Nine Elms, near Vauxhall.

Nick and Christian Candy made it known they intended to turn the old location into flats.

Since the announcement this month other suitors have expressed an interest. They include Irvine Sellar, the man behind the Shard of Glass, and Saudi billionaire Prince Alwaleed bin Talal, who tops Forbes's Rich List for Arabia with a $20billion fortune.

The Grosvenor Estate, which owns the freehold of the site leased to the Americans in the Fifties has also expressed interest, as has Elliott Bernerd and Sir Stuart Lipton's Chelsfield Partners. Irish developers Ballymore, to whose site at Nine Elms the embassy plans to move, have made it known they would consider a land-swap deal. The Grosvenor Square location is said to be worth £500million, even in today's market, although much will depend on what uses Westminster council will approve.

A source close to the sale has told the Estates Gazette: "Whoever buys the site will have to have a five- to six-year relationship with the embassy, as the purchase will be conditional on congress approval of the Nine Elms site. The US may feel more comfortable dealing with buyers other than Russian or Middle Eastern investors."

Another decision which would affect its value is whether or not the building will be listed. English Heritage is considering the merits of the building, designed by Finnish architect Eero Saarinen and built in the Fifties. Enthusiasts for 20th century architecture want it preserved, but the deputy leader of Westminster council does not.

However, Robert Davis added the council would prefer an institution or organisation to occupy the space, not a hotel or private flats. Councillor Glenys Roberts said it should revert to residential use.

Property experts say that until the future of the site is clarified in terms of conservation and potential uses, it will be impossible to value or bid for it.