Citigroup tower for sale for more than £1bn

Published 11th Apr 2011

UK's third-tallest building could set a new property record, despite the slump, after last changing hands in 2007

The Citigroup tower in Canary Wharf, one of Britain's tallest buildings, has been put up for sale for more than £1bn.

It is being sold by Glenn Maud, a British entrepreneur, and Derek Quinlan, a former Irish tax inspector turned property tycoon, who bought the 1.225m sq ft building for £1bn in 2007. They acquired it at the height of the property boom from Royal Bank of Scotland in one of the biggest deals ever and now want to reduce their borrowings. Not long after, the property market slumped.

The 42-storey office tower is, at 200 metres, the third tallest building in the UK and is visible across the London skyline.

It is let to American investment bank Citigroup, which uses the building as its European headquarters, on a long-term lease. The bank is currently paying rent of £47.50 per sq ft.

Jones Lang LaSalle's City investment team, which is handling the sale of 25 Canada Square, expects interest to come from "all corners of the globe," as well as UK real estate investment trusts, insurers and annuity funds. It is trying to lure buyers by arguing that the annual income return could reach nearly £70m within 10 years and more than £100m within 20 years.

It is hoped that the sale will set a new record, beating HSBC's sale of its London headquarters in Canary Wharf for £1.09bn in 2007.

Source: ' Guardian '

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