The listing of a chapel set within Chelsea Barracks could affect the benefits offered to buyers of the commercial property development.
Should the chapel be listed, the council would then be responsible for some of the benefits developer Project Blue is planning.
English Heritage wants the listing to go ahead, but Project Blue said if the building was retained by the council it would need “to review the content of the proposed scheme including the extent of the community benefits it can provide,” Property Week reports.
The developer noted the listing of the chapel would affect its neighbours, who are set to benefit from its further funding of a public open space, commemorative garden and sports centre.
The site was bought from the Ministry of Defence (MoD) in November 2007 by development company CPC and Qatari Diar Real Estate Investment.
The MoD owns land across the UK and several high profile offices in London.