11/28/2013 17:26 EST | Updated 01/28/2014 05:59 EST

Canada sells London diplomatic mansion for $530M

Canada has sold the John A. Macdonald building, the mansion in London that is home to some of the country's diplomatic activities in the U.K. 

Canadian High Commissioner to the United Kingdom Gordon Campbell confirmed the sale Thursday of One Grosvenor Square, which went to an Indian developer, Lodha Group, for $530 million.

About 250 diplomatic staff based in the Macdonald building will be consolidated in Canada House, which is about half a kilometre away, in a move to save money.

"There was exceptional interest from international parties for the property on Grosvenor Square," Campbell said in a news release. "We are looking forward to the move to Canada House on Trafalgar Square, Canada's traditional home in the United Kingdom, in the next year."

The federal government announced plans in February to put the Macdonald building on the market. At the same time, it said it had bought a property located beside Canada House. That property was originally opened in 1929 by the Sun Life Assurance Company of Canada and later served as the Canadian army’s overseas headquarters in London during the Second World War.