Queen puts property near palace up for sale

The Queen is hoping to sell several historic homes around Buckingham Palace in an effort to raise funds.

Russian oligarchs and other billionaires are expected to be the most likely purchasers of the four properties earmarked for sale.

The Crown Estate confirmed its intention to sell the buildings on Carlton House Terrace, overlooking the Mall, including its own headquarters, to residential rather than business customers.

Managers of the estate are in the middle of a ?500million upgrade of their Regent Street properties and as they are unable to raise money by borrowing from banks, they are selling surplus parts of the property portfolio.

According to figures released by the estate, a series of other sales brought in ?63.8 million in 2003-4 - double the amount over the previous 12 months.

The books also show an annual net revenue surplus of ?176.9 million from its management of one of the UK's largest property portfolios.

Surplus revenues from the portfolio, which has a property value of ?4.4billion, are surrendered to the Government by the Queen in exchange for public funds to pay for Head of State expenditure.

Almost all the property in Regent Street and Regent's Park belongs to the Crown Estate, while it has 120,000 hectares of agricultural land across England, Scotland and Wales.

It also owns substantial blocks of urban property.