(1)The companies may, with the agreement of the Secretary of State and on such terms as may be agreed with him, acquire—
(a)the freehold reversion in the demised land; and
(b)the freehold right for the hotel (or any part) to overhang the grounds of Kensington Palace.
(2)Nothing in section 5 of the 1702 Act shall apply to any disposal of the demised land under subsection (1) above.