The Aga Kahn, one of the word's richest men, is to create an Islamic museum and cultural centre in Canada, after failing to secure a prime hospital site in London.

The billionaire is reported to have bid between £20m and £24m for the 1.8-acre site opposite the House of Commons to house one of the largest collections of Islamic art and heritage in the English-speaking world.

But the owners of the site, the Council of King's College, have agreed to sell it to Guy's and St Thomas's charitable trust for £10.5m

The Aga Kahn Development Network, a group of private, non-denominational development agencies, will now create the museum on a 17.3-acre site in Toronto to be designed by Indian Architect, Charles Correa.