DUBAI - The U.S. government said Tuesday it sold its embassy building in London to Qatar as the gas-rich Gulf state expands its property empire in the British capital.
The U.S. State Department has signed a deal to offload the property in Grosvenor Square, a prime location in central London, to Qatari Diar Real Estate Investment Co., the country's property investment fund, according to statement. The terms of the deal weren't disclosed.
A spokesperson for Qatari Diar wasn't immediately available for comment when called by Zawya Dow Jones Tuesday.
The embassy last year announced plans to move to a new high-security building in Wandsworth, south of the River Thames in London and is holding a design competition for the project. The winner is due to be announced next year, and officials hope the building will be completed by 2017, the statement said.
The embassy building is the latest in a series of overseas investments made by Qatar, the world's largest producer of liquid natural gas.
Last month, Qatar Holding, the investment arm of the country's wealth fund, become the biggest shareholder in the company that owns much of London's Canary Wharf business district.
Qatari Diar is also involved in a number of prime London development sites, including Chelsea Barracks, a historic base used by the Queen's royal guards.