Vatican Sells London Building at Center of Corruption Scandal
Sale marks $140 million loss in investment that led to trial of 10 defendants on charges of embezzlement and other crimes
ROME—The Vatican sold a London commercial building at the hub of one of the biggest scandals of Pope Francis’ reign, at a loss of some $140 million.
The Vatican said Friday that it had sold 60 Sloane Avenue to Bain Capital LP for 186 million pounds, equivalent to around $225 million.
The investment in the building, a former Harrod’s auto showroom in London’s wealthy Chelsea district, has led to a trial at the Vatican of 10 defendants, including a once-powerful cardinal, on charges of embezzlement and other alleged crimes. All of the defendants deny wrongdoing.
The trial, which will soon enter its second year, is seen by many as a test of the pope’s overhauls aimed at bringing more transparency to the Vatican’s finances and of the Vatican criminal justice system’s ability to enforce accountability in its highest ranks.
Pope Francis has cited the probe as evidence that his overhauls have been effective. Defense attorneys, at times with support from the Vatican judges, have quarreled with prosecutors about whether the rights of the accused have been respected.
Prosecutors have said that the Vatican paid some 350 million euros, the equivalent of about $365 million, to acquire the London property through a series of complex transactions involving middlemen.
The scandal prompted the pope to remove hundreds of millions of dollars in assets from management by the Vatican Secretariat of State, which had acquired the property, undermining what has traditionally been considered the Vatican’s most powerful office.
The secretariat’s assets came largely from an annual collection from Catholics known as Peter’s Pence, long promoted as destined for charitable works though also available for the pope’s ministry.
Friday’s Vatican statement said that the losses incurred in the sale of the Sloane Avenue building wouldn’t affect Peter’s Pence.
The Vatican also said that the sale, which it said had been completed in recent days, was handled with the assistance of real-estate broker Savills and came after the Vatican received 16 initial bids.