The real estate investment arm of the Qatari government is to acquire the US embassy building in Grosvenor Square in London. The US State Department issued a statement on Tuesday to announce Louis B. Susman, the US Ambassador to the UK, had signed an agreement with the Qatari Diar Real Estate Investment Company in relation to the sale of the Chancery property.

The signing of the agreement with the Qatar-based investment company is the next step in the US plan to relocate to a new state-of-the-art embassy which the State Department said would 'enhance the urban fabric of London and demonstrate exceptional American architecture'. The construction of the new US Embassy in the Nine Elms area of Wandsworth will provide a modern, open and secure American diplomatic facility in London, it added.

In early 2010, the State Department will announce a winner of the design competition for the new US Embassy in London. Actual groundbreaking will depend on many factors, but it is hoped that construction will begin in 2012 or 2013, with the project completed by 2016 or 2017.

The US Embassy will continue to occupy the Chancery in Grosvenor Square until the relocation is complete. The Embassy was advised by Cushman & Wakefield.