Indian billionaire buys Scotland Yard; plans to convert it into luxury hotel

Indian billionaire Yusuffali Kader has purchased the original Scotland Yard site for $233.91 million (£110 m), which is to be converted into a luxury hotel with the help of developers Galliard Homes. The site was the London Metropolitan police's first headquarters between 1829 and 1890.

Mr Kader, who is India’s 30th richest man with a net worth of $5.10 billion (£2.4 bn) according to Forbes magazine, runs the Abu Dhabi-based Lulu Group. The hotel will be owned by the Lulu Group after its completion and be operated by the Steigenberger Hotel Group.

The existing Edwardian building was constructed in 1910 and was previously an Army recruitment centre. It was also the location for investigating the Jack the Ripper murders. Later in 1982, it was renovated as a library for the Ministry of Defence until 2004. The Galliard group, which acquired the site in late 2013, was reported to have struck a deal with Malmaison hotels, but the deal fell through as its US private equity owners reportedly sold the business.

The BBC reports that the 92,000 sq ft hotel, which is expected to open at the beginning of 2017, will be the Lulu group’s first venture in the U.K. The group, established in 1973, seeks interests in property, hospitality, food and manufacturing and retail sectors has an approximate net worth of $3.83 billion (£1.8bn).

According to the Financial Times , other Indian groups have also invested huge amounts in London properties, such as the Lodha Group - India’s largest housing developer by sales, which acquired the Canadian High Commission on Grosvenor Square for $ 650.46 million (£306 m)Mumbai based developer Indiabulls also acquired a building worth $329.48 million (£155 m) in Central London’s Hanover Square. However, there are concerns that these excessive deals might lead to a property bubble for investors.

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