Development company CPC and Qatari Diar Real Estate Investment have taken over Chelsea Barracks.
A deal between the pair and the Ministry of Defence secured the land for £959 million, with the plot valued at a record £75 million per acre.
The purchase marked the first European investment for the state-owned Qatari Diar and the beginning of a long-term development of 650 apartments.
"This is going to have a massive impact on the city’s economy and the rental values in London," Nick Candy told Property Week.
Plans for the development feature a semi-private woodland, a 54,000 sq ft sports complex and Westminster Council has asked for half of the housing to be affordable.
The MoD owns large amounts of property across the UK, some of which can be sold to developers of commercial property and new offices.
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