Mumbai firm buys prime diplomatic property in UK

Mumbai-based Lodha Developers have been confirmed as the new owners of Macdonald House in central London, which currently houses the Canadian High Commission.


Canada's High Commissioner to the UK, Gordon Campbell,confirmed on Thursday night that legal contracts have been exchanged for the sale of 1 Grosvenor Square for 530 million Canadian dollars.

"We thank Lodha Group for their keen interest and welcome this new phase in the project," Campbell said.

The High Commission, advised by Savills UK, said the Lodha Group will acquire the property.

"There was exceptional interest from international parties for the property on Grosvenor Square. 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," he said.

Canada had first announced its intention to sell the property in Canada's House of Commons in February.

It has described the move as a key step in plans to revitalise Canada House on Trafalgar Square in the heart of London and to consolidate the Canadian High Commission?s diplomatic activity in the UK in one central London location, "saving valuable operational dollars".

"The acquisition of this marquee asset overlooking London's most renowned garden square, in the heart of Mayfair, and in close proximity to Bond Street and Mount Street is a great opportunity for our company," Abhishek Lodha, MD of Lodha Group said.

The value of Macdonald House, if converted to residential use, is estimated at over 450 million pounds.

"This is without doubt one of the finest addresses in central London," Tim Whitmey, director in Savills development team, said.

London has been witnessing a massive property boom this year, largely triggered by cash-rich overseas investors keen on investing in the British capital.

Estate agent Wetherell recently claimed at least 20 of the 165 diplomatic missions in London have been sold or explored a sale in the past six months after prices in up-market embassy areas rose by up to 60 per cent since 2007.

The Canadians are following in the footsteps of their American counterparts, who sold the US embassy on Grosvenor Square in 2008.

More: http://www.hindustantimes.com/india-news/mumbai-firm-buys-prime-diplomatic-property-in-uk/article1-1156979.aspx

Keeping the pound, Queen and Dr. Who: Scotland tries to have it both ways in plan for separation from U.K.

Raising the stakes in its struggle for independence in advance of a referendum next year, the Scottish government Tuesday unveiled a voluminous prospectus for a new state with its own embassies and identity, but retaining significant bonds to Britain including a common currency — the pound — and allegiance to Queen Elizabeth as head of state.

The document said Scotland would also keep the British Broadcasting Corporation (BBC), although it would be named the Scottish Broadcasting Service, as well as popular television shows such as Dr. Who, Strictly Come Dancing and Eastenders.

An independent Scotland would also remain in the European Union and join the NATO military alliance.

However, Alistair Darling, former U.K. Treasury minister and leader of the Better Together campaign which is in favour of Scotland remaining in the U.K., called the report a “work of fiction.”

He said independence advocates “ducked the opportunity” to answer key questions about Scotland’s future.

“We have waited months for this and it has failed to give credible answers on fundamentally important questions,” he said.

Scots were being asked to “take a one-way ticket to a deeply uncertain destination” he said.

Politicians in England and Wales have warned that an independent Scotland would not be allowed to keep the pound currency and other critics wondered how Scotland would convince organizations like Europe, NATO, the BBC and Buckingham Palace to just accept the new country.

The prospectus released by Scottish First Minister Alex Salmond says independence will create a more democratic Scotland and a more prosperous country.

The governing Scottish National Party supports independence, while the opposition Labour and Conservative parties both oppose it.

“This is the most comprehensive blueprint for an independent country ever published, not just for Scotland but for any prospective independent nation” Mr. Salmond said at the launch of the 670-page document setting out the terms of separation.

On foreign policy, Mr. Salmond said that negotiations with the European Commission to join the EU were being blocked by the U.K. government in London and added: “We believe Scotland will be a welcome member of the EU.”

The U.K.’s nuclear deterrent is based in Scotland but would be withdrawn during the first parliament of a newly independent nation, the report states.

Mr. Salmond said Scotland would also be welcomed into the NATO alliance.

“Our assurance about NATO membership is that 25 out of 28 members are not nuclear powers and 20 members have no nuclear weapons on their soil so we ask for no special arrangements for Scotland,” he said.

Independence would mean that “the most important decisions about our economy and society will be taken by the people who care most about Scotland, that is by the people of Scotland.

“The door will open to a new era for our nation. Scotland’s future will be in Scotland’s hands,” said the document.

Political battles in the run-up to the referendum could come down to straightforward pocketbook politics.

The independence movement is strongly opposed by British Prime Minister David Cameron. The British government argues that people living in Scotland would pay an extra £1,000 ($1,600) a year in tax, while Mr. Salmond said Scots would actually pay less than they are paying now.

Scotland has already had its own Parliament since 1999 and its own set of laws. In a referendum on Sept. 18, 2014, Scots will be asked whether they want Scotland to become independent.

Mr. Salmond called for the historic referendum after his Scottish National Party in 2011 won a one-seat majority in the Scottish Parliament.

Polls have consistently put support for independence at between 25-30%.

More: http://news.nationalpost.com/2013/11/26/scotland-lays-out-blueprint-for-separation-from-u-k-saying-it-would-keep-pound-queen-and-stay-in-nato/

United Spirits stock plunges in early trade

United Spirits on Tuesday informed the exchanges that its board will meet to consider the concerns raised by the Office of Fair Trading, UK, (Competition regulatory body) after the acquisition by Diageo plc of its stake. The company, however, has not mentioned the date of board meeting.

Britain’s Office of Fair Trading (OFT) had found that a merger could lead to “substantial lessening of competition in the supply of blended whisky to retailers”.

“The parties are major suppliers of bottled blended whisky to retailers with Whyte & Mackay also being an important supplier of own-label blended whisky,” the OFT said in a statement.

“The OFT’s investigation found that there is substantial competition in the retail sector between Bell’s whisky, a Diageo label, and Whyte & Mackay’s own label and branded blended whisky,” it added.

Following these observations, Diageo offered to sell most of Whyte & Mackay, with the exception of two malt distilleries.

Shares of United Spirits tumbled to as low as Rs 2,400 in early trade on Tuesday, but has recovered to trade at Rs 2,569.75, still down about 2 per cent over the previous day' close.

“The board of directors will consider OFT announcement and determine further course of action,” the company informed the exchanges.

More: http://www.thehindubusinessline.com/markets/stock-markets/united-spirits-stock-plunges-in-early-trade/article5392786.ece