Admiralty Arch, one of London's most recognisable landmarks, is set to become a luxury hotel after being sold to a Spanish property developer.
The Grade I-listed building, which has three arches and views of Buckingham Palace and Trafalgar Square, has reportedly been bought for about £60m by Rafael Serrano.
Serrano, who recently built the Bulgari Hotel in Knightsbridge, acquired Admiralty Arch on a 125-year lease with an explicit condition that bars it from being converted into apartments or a single home, the Financial Times reports.
The deal, to be confirmed on Thursday morning, is part of a cost-cutting programme to force government departments to rationalise their property portfolios.
The arch was completed in 1912 after King Edward VII ordered that it built as a commemoration of his mother, Queen Victoria.
A Cabinet Office spokeswoman said: "Leasing Admiralty Arch will preserve the heritage of the building, provide options for increasing public access, and offer value for money for the taxpayer."