It currently owns 36.5% of the King’s Cross Central Limited Partnership which is developing land around King’s Cross Station.
Transport Minister Robert Goodwill said: “By selling the government’s shares in King’s Cross Central we are selling an asset we no longer need to keep and realising its value for the taxpayer.
“The sale will help reduce the deficit and by doing so deliver lasting economic security for working people.”
Lazard has been appointed as financial adviser to conduct the sale process, supported by Savills as real estate advisers.
The 67-acre King’s Cross estate is being developed into 8 million square feet of mixed use space, consisting of offices, apartments, retail space, educational establishments and leisure areas across 50 new and refurbished buildings.