The site in the upmarket Knightsbridge area is being sold by the British Ministry of Defence as part of the British government's sweeping reappraisal of its property portfolio. Ten companies are believed to be in the mix to buy the 13-acre site, including the Reuben Brothers, who last year emerged as backers of the Precinct consortium that was attempting to buy the Jurys hotel chain.

The Chelsea Barracks site is being sold with outline planning permission for 1,500 homes as well as shops and offices. It is home to about 300 troops, including the regimental bands of the Irish Guards and the Welsh Guards. Soldiers will have to vacate the premises by 2008.

Sean Mulryan has built extensively on London's docklands via Ballymore Properties. Last year he was tipped as a buyer for the Battersea power station, which was acquired by Richard Barrett and John Ronan's Real Estate Opportunities for roughly 600m two weeks ago. Mulryan has built extensively in eastern Europe and opened a development office in Paris earlier this year. He is also scouting for opportunities in the US.

Quinlan Private paid 1.1bn to buy the Savoy hotel group in 2004. This was with a profit of 60m, just eight months after it sold part of the operation to Saudi Prince al-Waleed bin Talal.