The funds were raised nearly entirely by selling off other properties in London.
Trump had accepted the Queen Elizabeth's invitation for a state visit when he met with U.K. Prime Minister Theresa May at the G20 summit in July.
However, he has opted out, citing the reason for the "bad deal" and US Secretary of State Rex Tillerson will now carry out the ceremonial duties at the official opening.
The trip, which was not officially on the books, would have been Trump's first visit to the United Kingdom as president.
London Mayor Sadiq Khan has now responded saying that Trump "got the message" from Londoners, and alluded that Trump's real reason for cancellation is fear of protests - something that has been widely speculated.
Almost two million British people added their names to an online petition in 2017 calling for Trump's visit to be downgraded from a state visit to avoid embarrassing the queen.
The Mayfair embassy buildings were also not sold for "peanuts", but went for an estimated £500 million to the property arm of the Qatari royal family, Qatari Diar, which plans to turn the location into an exclusive hotel. Trump was one of the few world leaders to endorse the move, and May's government has been courting closer ties to Washington, particularly in the area of bilateral trade.
Actually, it was the administration of George W. Bush more than a decade back, which decided the relocation of the United States Embassy just during the widespread push for more security at diplomatic sites of the United States. However, the promotion of far-right group Britain First on Twitter was particularly sensitive in the country too.