Stephen Conway, the chief executive of Galliard, declined to comment.
Galliard, the largest private housebuilder in the capital, purchased the Edwardian, Grade II-listed site, which was once home to Scotland Yard and the Ministry of Defence, in December last year, with the intention of transforming it into an upmarket hotel.
Galliard’s construction project, which began in January and is also funded by the Crown Estate, is estimated to cost £50m.
Plans for the seven-floor building, which featured in the 2007 film Atonement, include 235 bedrooms, a VIP suite, a vast ballroom and a high end restaurant.
This development is part of the transformation of government buildings in Whitehall to residential and leisure addresses.
The Corinthia Hotel in Whitehall Place was a former political stronghold, and Admiralty Arch on the Mall is also being converted into a hotel.
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