The old War Office building in Whitehall, London, has been sold to investment conglomerate Hinduja Group, in partnership with Spanish group Obrascon Huarte Lain Desarrollos, for £300m (US$472m, €378m).

Opened in 1906, the War Office was recently sold off by the Ministry of Defence (MoD) in a cost cutting move after being declared surplus to the ministry's requirements. Boasting over 1,000 rooms and two and half miles of corridors, it is likely that the the Grade II listed building is to be transformed into a luxury hotel with apartments.

Used during both World Wars, the building was a key strategic site for the British government and was home to Lord Kitchener, David Lloyd-George and Sir Winston Churchill. In order to preserve the site's heritage, the new owners will be granted a 250-year lease.

Hinduja Group appears serious about maintaining the spirit of the site, teaming up with developer Obrascon Huarte Lain Desarrollos (OHLD) which focuses specifically on ‘furthering top-quality developments in areas of tourist and historic value’.

Defence secretary Michael Fallon said: "The building has played an important part in our country's history and now presents a unique redevelopment opportunity in the heart of Westminster.”