Admiralty Arch on the market

Admiralty Arch, the historic and eye-catching London gateway that links The Mall to Trafalgar Square, is being sold by the government, and could become a new museum or hotel for the capital.

The building, which stands at the centre of some of London's most sought after and valuable space, is being put on the market by the government for at least £75 million. Civil servants have determined that full modernisation of the 80,000-square-foot building would not be an economically sound way to spend tax-payer money.

The building was first constructed in 1912. It has most recently been occupied by the Cabinet Office, but has been standing just about empty since nearly all staff moved to the Treasury building earlier this year.

The chief executive of the Shareholder Executive, Stephen Lovegrove, confirmed the news of the sale process at the Public Property Summit this week. He said that government was trying to orchestrate a future for the building that would protect its heritage, while also creating access opportunities for the public and gaining tax-payer value for money.

Savills has been appointed to handle the sale. Mr Lovegrove said a lot of caution was being taken over the sale of government properties, due to their current low values, which fell sharply as a result of the recession.