Duke of York's Headquarters (Hansard, 18 June 1999)

§ Mr. Spellar

On 8 July 1998, in connection with the publication of the Strategic Defence Review (SDR) we announced that the Duke of York's HQ in Chelsea would be sold and that its occupants, primarily the Territorial, Auxiliary & Volunteer Reserve Association for Greater London and Territorial Army units, would be re-accommodated as necessary. Since then, my Department has been considering how it might secure the optimum receipt for this prestigious site.

Following negotiations, and supported by advice from independent consultants, we have decided to proceed with a private treaty sale of the freehold of the site to Cadogan Estates, who own the principal adjoining site and are a special purchaser. The sale contract will be subject to Cadogan Estates achieving planning consent for an agreed planning application.

The agreed terms specify vacation of a considerable part of the site by March 2000. We require a longer period to finalise and prepare alternative locations for the affected units and we will vacate a further part of the site over the three years to 2003. Under the deal we have negotiated with Cadogan Estates, MOD retains an option for TA and cadet occupation in a small enclave within the site beyond 2003. However, we have not come to a decision yet on whether or not to exercise this option.